Weekly recap of HRS&C in Shanghai (Sept. 19-23)

Weekly recap of HRS&C in Shanghai (Sept. 19-23)

During the week ending September 23, 2005, Shanghai HR sheet/coil (HRS&C) prices continued to exhibit a downward trend. Traders frequently adjusted their medium HRS&C prices, and the market prices showed a large decrease range. Some steelmakers’ prices were below RMB 3’300/ton ($407). For thin HRS&C, traders slashed prices of Shanghai No.1 Steel Plant and imports. By the closing of trade on Friday (September 23), the prevailing market price for 5.75mm*1500*C SS400 was RMB 3’330/ton ($411), down RMB 90/ ton ($11) compared to that of the previous week. 2.75mm*1250*C SPHC was down RMB 50/ton at RMB 3850/ton ($475), while MMK (Russia) 1.8mm*1250*C SPHC was unchanged at RMB 4’200/ton ($518). For details, please see the following: Medium HR Sheet/Coil On Monday (September 19), market prices saw a slight increase. The prices of traders who had raised their prices during the previous week (September 12-16) remained constant. Traders who had quoted low prices also increased their prices, with the exception of traders who were short on products. The mainstream market prices went up slightly and very few transactions were concluded. On Tuesday, market prices were down RMB 30/ton ($4). Price quotations of 4.5-11.5mm were below RMB 3’500/ton ($432). Medium and small-scale traders once again quoted low prices of RMB 3’360/ton ($414), further reducing their prices in the afternoon. On Wednesday, prices of traders were quoted at different levels. Leading traders either increased their prices or kept their prices stable at RMB 3’480/ton ($429). Price quotations of medium and small-scale traders were at RMB 3’360/ton ($414). Leading traders did not see many transaction activities. It was reported that there were batches of Shagang’s product arriving in Shanghai. On Thursday, the market witnessed a broad range of declines. For Shagang, prices of some of its products were low at RMB 3’320/ton ($409). Leading traders cut their prices by RMB 50/ton ($6) to RMB 3’430/ton ($423) one after another. Prices of medium and small-scale traders kept declining. On Friday, prices continued to decline. Prices of leading traders were low at RMB 3’400/ton ($419). One of the leading traders cut prices for Meishan Steel’s 7.5-11.5mm*1250*C Q235B by RMB 150/ton ($18) to RMB 3’300/ton ($407). Medium and small-scale traders cut price quotations to RMB 3’310-3’350/ton ($408-413). The price of Shagang’s 4.5mm*1250*C Q235B was RMB 3’290/ ton ($406). Transactions failed to pick up as the prices fell. Thin HR Sheet/Coil 2.0-2.75mm SPHC of Shanghai No.1 Steel Plant and products of Zhujiang Steel saw their prices decrease. Prices on Monday (September 19) were weak. On Tuesday, the price for Shanghai No.1 Steel Plant’s 2.75mm SPHC was down RMB 80/ton ($10) to RMB 3’950/ton ($487). Some traders sold Shanghai No.1 Steel Plant’s 2.0-2.75mm SPHC at a relatively low price on Thursday and Friday. Some traders even cut prices of 2.75mmSPHC produced by Shanghai No.1 Steel Plant by RMB150/ton ($18) to RMB 3’800/ton ($469). Leading traders continued to cut prices of Zhujiang Steel by RMB 80/ton ($10) on Thursday and Friday. During the week, Meishan’s products were in short supply and prices were relatively stable. Prices of Lianyuan Steel did not change much. Its1.5-1.8mm Q235B price was down RMB 50/ton ($6), and the price of 1.8mmQ235B was at RMB 4’150/ton ($512). On Thursday, prices of imported products decreased by RMB 100-200/ ton ($12-25) and saw a slight decline on Friday. Shanghai market continued to show downward trend and prices were below RMB 3’400/ton ($419), with some prices as low as RMB 3’300/ton ($407). Traders had hoped that steelmakers would take some measures to improve the market condition.