During the past week (March 11-17), finished steel prices in the Chinese domestic market have been soaring in the context of the ongoing annual iron ore price talks and the strong price increases being sought by the miners. As of March 17, the average prices of steel plates in China's main cities 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 | 4,387 | +253 | 663 | +37 |
Low alloy medium plate | 20 mm | Q345 | 4,540 | +280 | 666 | +41 |
Shipbuilding plate | 16 mm | CCS A/B | 4,590 | +193 | 673 | +28 |
Plate prices in the Chinese domestic market have been trending up strongly in the week in question, with minimum daily increases of RMB 50/mt ($7/mt) seen. During the given week, most mills have made frequent upward adjustments to their prices. For example, Tianjin Iron and Steel raised its ex-mill plate prices on four occasions from March 9 to March 16, with an aggregate increase of RMB 400/mt ($59/mt). After the adjustments, the price of 16-20 mm common carbon plate produced by Tianjin Steel has risen to RMB 4,350/mt ($634/mt) ex-mill. Meanwhile, on March 15 Guangdong Province-based Shaoguan Steel increased prices for its common carbon plate, low alloy plate and premium plate by RMB 30/mt ($4/mt), while on March 16 it raised its prices for shipbuilding plate by RMB 80/mt ($12/mt). Many plate manufacturers have made similar upward adjustments during the week in question.
With new arrivals slowing down and with more shipments being delivered, inventory has started to shrink recently. However, insiders are somewhat worried about the future market, as current increases have been driven only by rising costs. The Chinese steel industry is still not sure whether the recent increases will be absorbed by the end-user market, while some players are also concerned that the Chinese currency could appreciate rapidly under pressure from the US.