SteelOrbis Shanghai
Over the past week, the Chinese hot rolled market saw a price rebound with cold rolled prices showing weak and stable movement.
On November 13, the average price quotation of 5.75 mm x 1,500 mm x C SS400 hot rolled coil in Tianjin, Shanghai and Lecong was up RMB 50/mt ($6) from November 06 to RMB 3,707/mt ($472), while that of 2.75 mm x 1,250 mm x C Q235B hot rolled coil was down RMB 7/mt ($1) to RMB 3,883/mt ($494).
The average price of 1.0 mm x 1,250 mm x 2,500 mm ST12 cold rolled sheet was down RMB 33/mt ($4) to RMB 4,700/mt ($598), while that of 1.0 mm x 1,250 mm x C ST12 remained constant at RMB 4,683/mt ($596).
On the hot rolled side, the overall market continued its rebound trend of the previous week. However, market performances differed in the various regions. For example, the Tianjin market first saw a slight rebound, and then remained stable for the rest of the week. Meanwhile market prices became weak in Shanghai after a continuous rise, while the markets in Guangdong and Lecong remained strong with good
trading performances.
According to the market data, inventory climbed up slightly throughout the past week, which is not a good sign for the future.
With a good exports situation, the leading steel mills refused to lower their ex-factory prices, so traders had to raise prices, causing the latest rebound trend in hot rolled. However, due to the sluggish demand, the current rebound trend won't last very long, with a downward trend likely in the coming period. On the other hand, since hot rolled exports are expected to maintain a high level in November, the market is therefore unlikely to see a sharp drop in the short run.
As regards cold rolled, the market moved quite steady. With a slight increase in market inventory, market pressure was not very big. However, due to the price decrease in hot rolled sheet, the cost of cold rolled sheet also went down. Traders worried that these low-cost supplies could affect the market to a certain extent in the current bearish atmosphere.
Statistical figures published by the
China Iron and Steel Association (CISA) indicate that Chinese hot rolled
production totaled 6.39 million mt in October, up 33 percent year on year and up 14 percent month on month; cold rolled
production totaled 2.39 million mt, up 54 percent year on year and 4 percent month on month.
It is estimated that Chinese hot rolled
production will continue this rapid growth in November and December. With the declining demand, if exports are curbed, the domestic market will have to face great pressure.