In the week ending July 21, prices of common carbon and low alloy medium steel plates in the Chinese domestic market posted a significant increase after a prolonged downward movement, whereas prices of shipbuilding plates have remained on a declining course. As of July 21, the latest sales prices in the market are listed as below:
Product name | Specification | Category | Average price (RMB/mt) | Weekly change (RMB/mt) | Price ($/mt) | Weekly change ($/mt) |
Common carbon medium plate | 20 mm | Q235 | 4,083 | +73 | 603 | +11 |
Low alloy medium plate | 20 mm | Q345 | 4, 190 | +40 | 619 | +6 |
Shipbuilding plate | 16 mm | CCS A/B | 4,583 | -33 | 677 | -5 |
Stimulated by the increases in the steel futures market, the Chinese steel plate market has finally emerged from its stagnation. With more long positions held by speculators, the steel futures market has risen strongly recently. This positive signal has helped to boost buyers' confidence in the spot market.
Within just two or three days, common carbon medium plate prices have climbed up by RMB 70-100/mt ($10-15/mt) or by an even greater margin in some Chinese cities. Given the sudden increases in plate prices, domestic traders have started to reduce their supplies to the market, in anticipation of further increases. Currently, many traders' offers are higher than the levels of mainstream prices in the market. With prices moving up, market activities are gradually recovering.
However, some buyers view the rapid increase in the steel plate market with caution. As some predict, the uptrend could prove to be short-lived and prices could fall back down again next week.
Despite the continuation of the declining trend in shipbuilding and boiler plate prices, it is expected that prices of these products will rise in the short term.