Siesta continues in plate markets

SteelOrbis Shanghai The demand for low alloy plates slightly went up last week as they were in short supply and the demand increased, while there were not many deals concluded for common carbon plates, which are abundant in the market, leading to weaker prices. Due to the rapid ex-factory price increases of steel mills in the previous weeks, the cost prices in Shanghai and Tianjin markets are now above RMB 3,600/mt, close to the current sales prices. Therefore, some traders are holding their sales to see what will happen. Steel mills have also canceled the subsidy for transportation and abolished the policy of compensating profit to traders in the case of weaker market prices, which also increased traders' cost pressure. Plate prices are comparatively firmer in Lecong market, while softer in Tianjin and Shanghai markets. Last week, the prices of 12-20 mm products have slightly decreased, while those of 8-10 mm products increased. In Tianjin, 8-10 mm products are in short supply. Shanghai market is also likely to face shortage in the near future. The plate prices are unlikely to see a sharp fall due to the tight availability of certain products and cost pressure. On the other hand, some new batches of products will be coming into the market soon, which is expected to prevent sharp price increases.