Chinese medium plate market goes stable

SteelOrbis Shanghai While Chinese plate export prices are stable at a strong level, domestic prices are also stable at a relatively lower level with flat commercial activity. On the imports and exports side, the quotation of Chinese shipbuilding plate exported to South East Asia is still at about $600/mt CFR SEA, mainly due to the brisk demand of shipbuilding industry in South East Asia. Without any exciting news on macro-economy or policy, market prices have entered into a relatively stable period after the sharp fluctuations in earlier times. Market moved flat throughout the whole week with almost no changes in prices. Influenced by some local factors, some regional markets saw a temporary fluctuation, but it did not have a serious effect. In such a calm market atmosphere, the commercial activity is quite sluggish. In order to sell their products, some traders reduced their prices which were originally a little bit higher than the common market prices. Therefore, the top price of the current market declined. Inventory increased in all regions compared with earlier times. Tianjin Steel, the leading steel mill in Tianjin region, has finished its overhaul. A production line in Lecong based Shaoguan Steel, which had stopped the production because of overhaul, has also recovered production, leading to the rise in the future inventory. In Shanghai, the market situation is still the same, with little supply from leading steel mills and much from medium-sized steel mills. Sources reported that, from August 10, Yingkou started its overhaul lasting about 20 days, which may influence its ordered quantity for September. Therefore, with the increase in Yingkou products prices in Shanghai market, it is expected that Yingkou price will be higher than the common market price, which may support the prices, relieving the downward trend. Unlikely to have a sharp increase or decrease in the future, the market will see slight decline and fluctuation for the next week.