SteelOrbis Shanghai
Medium
plate price trend is similar to that of hot rolled coils, i.e. steel mills' price hikes drive up the market prices, but the sluggish transaction volume suppresses the increase. Steelmakers prefer to hike their prices due to good export situation.
On one hand, the international
slab prices are strong, so Chinese steel mills plan to increase
slab offers which are used to produce medium
plate to $440-450/mt CFR. On the other hand, Chinese export offer prices for medium
plate are on the rise. Price quotations for export to South
Korea given at $550/mt could be taken as an example in this respect.
Last week, availability was tight in leading Chinese medium
plate markets. Medium
plate prices have retained the upward trend with slow pace, but the commercial activity did not change much.
Thanks to the short supply and frequent price hikes by steel mills, traders did not have much pressure in selling activities. They adjusted their prices in accordance with the prices of steel mills. However, with the sales activity not getting any better, some traders began worrying about the future of the market.
Supply is currently short in each major market. In Tianjin, it's not easy to buy the 10-12 mm products, and it is also difficult to find 8-10 mm products in Lecong. However, the shortage failed to drive up the prices due to bearish sales figures. Similar to the previous price changes, steel mills' price hikes is the main reason for the increase in medium
plate prices. For instance, on April 10, Guangdong based Shaoguan Steel hiked its prices, and afterwards, medium
plate prices in Lecong, went up by RMB 100/mt ($12).
In summary, the gap between ex-factory and market prices still exists in a short supply environment. Therefore, there's room for medium
plate prices to go up. Yet, the sluggish transaction prevents the price climb. Thus, in the short term, medium
plate prices might see slight upward trend but certainly with price fluctuations due to the bearish sales figures.
On April 11, the average price of 20 mm Q235 B in Shanghai, Tianjin and Lecong was RMB 3,717/mt ($464), up RMB 84/mt ($11) weekly, while that of 20 mm Q345 B was RMB 3,725/mt ($465), up RMB 25/mt ($3).