In the past week, Chinese medium plate prices continued their upward trend of the previous week. As of April 11, average prices in China's main medium plate markets are as follows:
Product name | Specification | Category | Average price (RMB/mt) | Weekly change (RMB/mt) | Price | Weekly change ($/mt) |
Common carbon medium plate | 20 mm | Q235 | 4,947 | +100 | 756 | +15 |
Low alloy medium plate | 20 mm | Q345 | 5,055 | +115 | 773 | +18 |
16 mm | CCS A/B | 5,417 | +50 | 828 | +8 |
The factors contributing to the uptick in Chinese medium plate prices are:
•1. Price increase in raw materials, such as billets and slabs, in the Tangshan area
•2. Reduced steel shipments from producers because of slab shortages and mill maintenance work
•3. Traders are more confident
•4. Stocks of medium plate have been decreasing for three consecutive weeks.
Aggregate inventory of medium plate in the main Chinese markets on April 8 totaled 1,565,030 mt, down 18,760 mt week on week. The volume is still quite substantial, despite the decrease.
April is the traditional peak season for consumption, and so anticipated increased demand in late April could also stimulate prices. Meanwhile, given the complicated global economic situation, China's tight macroeconomic policy and the large volumes of stocks, the upward movement of domestic medium plate prices may face some resistance.
As for next week, prices of medium plate in China are expected to continue to rise, though the upward movement may not be so smooth.