SteelOrbis Shanghai
The sharp increase in both ex-factory prices and market prices influence the export offers. Traders are having difficulty in determining their purchasing prices and controlling their costs. Therefore, they also have difficulties in giving export offers. The sharp increase range of domestic prices also brings the opportunity cost to the agenda. Some offers of medium and thick hot rolled coils have been heard at $445/mt FOB level last week.
The influence of steelmakers' ex-factory price increases is diminishing, but the sharp increase range, once again stimulate the market, renewing traders' confidence in the market. However, some traders are worried about the current high price level, because neither the transaction volume, nor the demand has picked up.
The shortage in products and market players' confidence in the market may support the current price level of flat products, especially that of CR products. However, the unfavorable business activity might curtail the market prices.
By the end of
trading on Monday, March 6, the average price of 5.75 mm x 1,500 x C SS400 in Tianjin, Shanghai and Lecong was up RMB 293/mt ($36) weekly at RMB 3,670/mt ($456), that of 2.75 mm x 1,250 x C SPHC was up RMB 273/mt ($34) at RMB 3,883/mt ($483), while that of imported 2.0 mm x 1,250 x C 08YU was up RMB 275/mt ($34) at RMB 4,050/mt ($504).
On the CR side, the price of 1.0 mm x 1,250 x 2,500 ST12 was up RMB 333/mt ($41) at RMB 5,200/mt ($647), that of 1.0 mm x 1,250 x C ST12 was up RMB 300/mt ($37) at RMB 5,067/mt ($630), while that of imported 0.6 mm x 1,250 x C 08YU was up RMB 267/mt ($33) to RMB 5,167/mt ($643).
The increase range of CR is larger than that of HR, but sees more bearish business activity. Before the announcement of Wuhan Steel's April price list, the CR prices in the Shanghai market were stable, while those in Tianjin and Lecong were up due to the large price gap compared to Shanghai. Each market is in short supply to a certain degree. For example, Shanghai is in shortage of 1.0 mm and 3.0 mm CR, and Lecong is short of 1.1 mm and 1.4 mm cold rolled products. Prices are relatively firm, as traders resticrt their sales while steelmakers' supply is small. However, the demand from the end users did not completely recover. Therefore, there were not many concluded deals.