SteelOrbis Shanghai
Influenced by the sluggish demand, the Shanghai flat rolled market continued to lead the downward slide over the past week, followed by the other local markets, thus resulting in an overall downward trend in
China.
By the end of
trading on October 30, average price quotations of 5.75mm*1500*C SS400 in Tianjin, Shanghai and Lecong were down RMB 66/mt ($8) to RMB 3'667/mt ($466), while those of 2.75mm*1250*C Q235B were down RMB 60/mt ($8) to RMB 3'973/mt ($ 505).
The average price of 1.0mm*1250*2500 ST12 is down RMB 13/mt ($2) to RMB 4'800/mt ($ 610), while that of 1.0mm*1250*C ST12 is down RMB 10/mt ($1) to RMB 4'703/mt ($ 598).
As regards hot rolled, the market saw bearish
trading performances throughout the past week. During the previous weeks, some traders completed significant purchases even though the market was decreasing. However, after experiencing a further continuous decrease, these traders suffered great losses, thus further aggravating the bearish market atmosphere. Market players predict that the market will not take a turn for the better in the short term.
As regards cold rolled, even with weak performance and sluggish commercial activity, cold rolled sheet did not see the sharp decrease that hot rolled sheet did. However, traders are not optimistic about the future because of the continuous slight decline.
On October 27,
China's Ministry of Finance announced its new import and export tariff policy, which will increase the export tariff rate of semi finished steel and other steel products from 0 percent to 10 percent. This news had a certain negative impact on the market. However, since
slab exports are quite small compared with hot rolled
production, the impact on hot rolled sheet prices is limited.
In the present market situation, macro-control measures are already showing their effect, leading to curbed demand and bearish
trading. Therefore, in the short term, a downward tendency will continue to be seen.