China’s medium plate market maintains its rebound

Continuing its rebound movement, China's domestic medium plate market registered a small increase each day during the past week.

As market prices continued to rise, the domestic medium plate market observed a certain increase in the trading volume; however, most deals were concluded between traders, with still no improvement seen in actual downstream demand. Currently, most players are not sure why prices are climbing and whether there are any genuinely positive factors providing support for the market, and so they still lack confidence in the future.

In northern China, Tianjin Steel carried out overhauling work on its common carbon plate production line, thereby having a certain impact on the supply of common carbon plate in the Tianjin market. Meanwhile, with shipping transportation affected by the dry season in the south, it has become difficult for Liuzhou Steel's materials to flow into the Lecong and Guangzhou markets, leading to a drop in medium plate inventory in Lecong. Apart from these factors, the domestic medium plate market does not seem to have received much positive momentum from other sources.

As regards special-purpose plate, market demand is not great and so the prospects for the shipbuilding plate and boiler plate markets appear gloomy for the coming period.

Following two weeks of climbing prices, traders are now able to make a profit from their current inventories. Stimulated by the profit range now available, some second and third tier mills that had suspended their operations are likely to resume their production. Nevertheless, there is still concern among players as to whether the market will continue its rebound in the near future.

China's medium plate production in September totaled 4.9243 million mt, up 123,500 mt or 2.57 percent year on year. Average daily production during the month reached 164,100 mt, up by 5,200 mt or 3.26 percent month on month. Meanwhile, medium plate production for the January-September period reached 42.7227 million mt, down 3.7478 million mt or 8.06 percent year on year.

According to the latest figures, China's medium plate exports in September reached 403,900 mt, down 406,500 mt or 50.16 percent year on year, totaling $231 million in value, down $755 million or 76.58 percent compared with the same month last year. The average export price in September was $571.82/mt. Total January-September exports reached 2.2477 million mt, down 4.3128 million mt or 65.74 percent, amounting to a total value of $1.667 billion, down $4.822 billion or 74.32 percent year on year.

Medium plate imports in September stood at 146,300 mt, up 42,000 mt or 40.22 percent year on year, totaling $129 million, down $56 million or 20.24 percent compared with the same month last year. The average import price was $878.75/mt. Total January-September medium plate imports came to 936,600 mt, down 24,900 mt or 2.59 percent, amounting to $1.322 billion in value, down $212 million or 13.8 percent year on year.