Against the spreading panic atmosphere, China's domestic hot rolled market continued its downward movement during the past week, accompanied with confusions observed over market quotations.
Product name | Specification | Category | Average price (RMB/mt) | Weekly change (RMB/mt) | Price ($/mt) |
HR | 5.75 mm x 1,500 mm | Q235B | 3,783 | -307 | 554 |
HR | 2.75 mm x 1,250 mm | Q235B | 4,027 | -306 | 590 |
In the past week, a rapid fall was seen in hot rolled quotations in the Shanghai, Tianjin, Lecong, and other leading markets, with certain confusions recorded over market quotations. In face of the recent market descending, end-side buyers that have maintained a standoff stance as regards the market trading seem uninterested I making purchases. In the context of the bearish sales performance according to many traders, the shrinking trading volume has significantly contributed to the panic atmosphere among market players. Moreover, the latest price policy of Baosteel failed to stimulate the market prices as expected, which is another reason for the market panic.
On August 11, Baosteel announced its price policy for September, with SS400 prices rising by RMB 600/mt ($88/mt) and SPHC prices up by RMB 500/mt ($73/mt). As a result, the new price of 5.75 mm x 1,250 mm x C SS400 is now at RMB 4,542/mt ($665/mt), while that of 2.0 mm x 1,250 mm x C SPHC stands at RMB 4,992/mt ($731/mt). The above prices exclude 17 percent VAT and are effective from August 11, 2009.
On August 14, Shandong Province-based Laiwu Steel lowered its hot rolled prices by RMB 230/mt ($34/mt), with its 5.75 mm Q235 HRC now offered at RMB 4,000/mt ($586/mt).
According to the latest figures, hot rolled inventory in Shanghai amounted to 889,000 mt on August 14, down 10,000 mt compared with the level on August 6.
In previous times, lacking support from market demand, market prices had ascended up on the back of the raised HRC ex-factory prices from mills. However, after the previous rally, market prices still failed to be accepted by market demand. The minor impacts of Baosteel's latest prices on the market also proved that mills' price hikes wouldn't be enough to prop up the market prices. Above all, China's hot rolled market is expected to remain on its weak sliding trend in the coming week.