Given the fluctuating trend observed in the domestic semi-finished steel market, the Chinese steel plate market has shown some weakness during the week ending September 15. Plate prices in the northern Chinese market were the first to start declining, having shown the strongest uptrend among all the regions in the previous few weeks; meanwhile, in other regions plate prices have registered a relatively slower downward movement. As of September 15, the average plate prices in the main Chinese regions are as follows:
Product name |
Specification |
Category |
Average price (RMB/mt) |
Weekly change (RMB/mt) |
Price ($/mt) |
Weekly change ($/mt) |
Common carbon medium plate |
20 mm |
Q235 |
4,563 |
-7 |
679 |
-1 |
Low alloy medium plate |
20 mm |
Q345 |
4,730 |
- |
704 |
- |
Shipbuilding plate |
16 mm |
CCS A/B |
4,883 |
+33 |
721 |
+5 |
During the week in question, major domestic steel producer Baosteel Group announced increases of RMB 100-380/mt ($15-57/mt) in the published prices of its main steel products for October shipment. After the adjustment, the price of common carbon medium plate stands at RMB 4,600/mt ($685/mt), while that of low alloy medium plates is at RMB 4,750/mt ($707/mt). Both prices are exclusive of 17 percent VAT. Other domestic plate producers then followed Baosteel's example. Despite the efforts of these steelmakers, market prices appear to lack momentum and have failed to trend up.
Although market supplies have been shrinking due to the national policy on energy savings and emissions reductions implemented by most provincial governments in China, it is thought that it will be difficult for domestic plate prices to move up further as demand is likely to be negatively affected by the upcoming national holidays in the country.
According to the figures from China's National Bureau of Statistics, in August the medium plate output in China totaled 3.54 million mt, up 12.4 percent year on year.