Medium plate price decline may catch other products

SteelOrbis Shanghai Medium plate prices are at a relatively high level compared with the sharp decline in HRC prices. Therefore it has a larger decrease range for the future, and medium plate prices are expected to continue going down next week. On the imports and exports side, Chinese medium plate offers to South Korea medium plate saw a minor reduction. Sources reported that, medium plate offers for consignment in late August – early September have declined $15/mt from the previous month to $570/mt CFR. Meanwhile in the domestic market, ex-factory prices of all large steel mills and the market prices have decreased by large margins every day throughout last week. Weekly decline for 16 mm Q235 B plate domestic market price is around RMB 240/mt ($30), and that of 16 mm Q345 B is around RMB 235/mt ($29). Medium plates are under similar pressures with other flat products. The bearish commercial activity and traders who reduce their prices to sell more products in the short term have caused to a decline in the market prices. The decline is especially evident in northern markets where the daily decrease range even exceeded RMB 100/mt ($13). Tianjin, the northern market, records the lowest price level, while Beijing and Shanghai record higher levels. Sources reported that, Tianjin Steel, the leading steel mill in the region, began to increase its production. On July 11, the daily medium plate production reached around 4,000 mt, sharply increasing the market supply. The supply in Shanghai has not increased so much. It has been indicated that the end users were inactive in purchasing products because of the downward price trend. Many steel mills have decreased their ex-factory prices by large margins or published some favorable policies. Last week, Xicheng, Liuzhou Steel, Handan Steel, and Angang Steel decreased their medium plate prices by RMB 100-300/mt.