Supported by the upward adjustments in domestic producers' ex-mill prices, steel plate prices in the Chinese market trended up at a relatively rapid pace in the week ending August 4. However, the price increases have yet to attract significant interest from domestic buyers. As of August, 4, sales prices of steel plates in the Chinese market 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 | 4,447 | +120 | 652 | +18 |
Low alloy medium plate | 20 mm | Q345 | 4,550 | +125 | 672 | +18 |
Shipbuilding plate | 16 mm | CCS A/B | 4,737 | +50 | 700 | +7 |
During the week in question, many plate producers announced new price policies for August. Hebei Province-based Xinyu Steel Company has raised its medium plate prices by RMB 300/mt ($44/mt); as a result, its 14-20 mm Q235 medium plate is now priced at RMB 4,750/mt ($701/mt) ex-mill. Meanwhile, Changda Steel Company based in Jiangsu Province has also increased its plate prices, by RMB 190/mt ($28/mt); thus, its price for 14-20 mm Q235 plate is now at RMB 4,400/mt ($650/mt) ex-mill. Likewise, the price of 14-20 mm Q235 plate given by Shanghai-based Chunye Steel has risen by RMB 290/mt ($43/mt) to the level of RMB 4,430/mt ($654/mt). With these increases, the price gap between plates and hot rolled coil, which had previously narrowed, has returned to normal levels.
In spite of the increases in steel plate prices, market activity does not seem to have improved. Sellers' order books reflect a certain degree of slackness in activity levels. Also, with the hot weather in the month of August, demand from end-users appears to be on the slow side.
Today, August 4, the domestic hot rolled coil market has indicated some decreases. It is expected that, if declines continue in hot rolled coil prices in the coming period, the local plate market will also be affected. In the short term, China's domestic steel plate market is expected to trend sideways.