Chinese flat rolled prices move flat

SteelOrbis Shanghai Chinese flat rolled market was stable at a low price level throughout last week, with little improvement in commercial activity and slight increase in inventory. On August 7, the average quotations of 5.75 mm x 1,500 mm x C SS400 hot rolled coil in Tianjin, Shanghai and Lecong was RMB 3,610/mt ($453) up RMB 10/mt ($1) week on week, that of 2.75 mm x 1,250 mm x C Q235B was RMB 4,073/mt ($511) up RMB 73/mt ($9). The average price of imported 2.0 mm x 1,250 mm x C 08YU was down RMB 30/mt ($4) at RMB 4,220/mt ($529). At present, with the low price and inventory level in Chinese hot rolled market, most of the steel mills have determined their ex-factory prices for August, which prevent the prices from going down. Meanwhile, thanks to the better supply and demand situation, traders are also unwilling to sell with lower prices. Therefore, the market prices are increasing steadily. However, the prices are unlikely to see a sharp increase in the short term because the dead season of consumption is not over yet, and future production growth is expected to exert pressure on the market. On the cold rolled side prices dropped slightly week on week. The average price of 1.0 mm x 1,250 mm x 2,500 mm ST12 cold rolled sheet was RMB 4,767/mt ($598) on August 7, down RMB 6/mt ($1) week on week, and that of 1.0 mm x 1,250 mm ST12 cold rolled coil was RMB 4,710/mt ($591), down RMB 13/mt ($2). The average price of imported 0.6 mm x 1,250 mm 08YU cold rolled coil remained unchanged at RMB 5,000/mt ($627). At a particular time in the week, cold rolled product prices saw an overall increase, but due to insufficient demand and sluggish commercial activity, the prices could not go up further. With higher domestic cold rolled steel production, the pressure on cold rolled market will be greater. All in all, after experiencing a continuous price decrease for nearly two months, flat rolled prices are at the bottom now. Although the bearish commercial activity and macro-control measures did not have a direct impact on the current supply and demand relationship, they still gave a great pressure on the market confidence. Therefore, a long time is needed for the market to leap from the bottom and the downstream side to accept the current prices.