Downward movement in local Chinese steel plate market

During the week ending September 14, steel plate prices in the Chinese domestic market have mostly continued their declining trend, while overall transaction activity in the market is still on the slack side. Average steel plate prices in China are presented in the tables below. 

 

In the first part of the given week, as the military parade in Beijing ended, the pent-up demand has been released for a short time, with improvement seen in China’s domestic market and overall transaction activity standing at decent levels. However, since the output and demand were at a standstill during the military parade period when steelmakers proceeded the production limitations, traders were too eager to deliver the goods in the market to get money after the parade, which instead restricted the buyers’ order willing, with overall transaction activity indicating a downward movement in the latter part of the week.

Currently, orders at traders hands are limited while traders’ intentional decreasing price for attracting new orders may possibly lead to a vicious circle again, which will exert negative impact on the domestic market. In addition, finished steel prices in China’s domestic market stand at a sluggish level amid the continuous rising trend of imported iron ore prices which will largely increase the cost of steel plates in domestic market. It is thought that steel plate prices in the Chinese domestic market will continue the downward movement in the coming week.

 

 

 

17 percent VAT is included in all prices and all prices are ex-warehouse.

 

$1 = RMB 6.37