Chinese medium plate prices see adjustment after rapid rise

SteelOrbis Shanghai Last week, the Chinese medium plate market entered a price adjustment phase after the soaring trend of the previous week, with different price movements observed in the southern and northern regions. On January 16, the average price of 20 mm Q235 B in Shanghai, Tianjin and Lecong has risen RMB 30/mt ($4/mt) to RMB 3,940/mt ($506/mt), while that of 20 mm Q345 B was up by RMB 25/mt ($3/mt) to RMB 4,055/mt ($521/mt). Medium plate prices saw a slight jump during the beginning of the past week. In the middle of the week, however, prices began to show stable movement. Different trends also became evident between the southern and northern markets. In the south, due to the continuous rise seen in ex-factory prices and the insufficient market supply, the prices climbed up again. With regard to the northern region, since the traders were eager to sell their products due to inventory pressure, the prices went back down. As for eastern China, the market in Shanghai remained stable on the whole. The present price level in the northern market is close to the mills' ex-factory prices. For instance, many traders give the quotation of RMB 3,760/mt ($483/mt) in Tianjin, which is similiar to the ex-factory price of Tianjin Steel. Furthermore, the inventory pressure in the north is also unfavorable to the market. With regard to the southern region, Shaoguan Steel and Liuzhou Steel hiked their ex-factory prices a number of times, and this was reflected in the rising market prices. However, influenced by the price decline in HR coils, the medium plate market saw a sluggish trading performance. Driven by shooting domestic prices, the export prices of medium plate also began to climb up. SteelOrbis is informed that the export quotation of heavy plate to South Korea has risen $15/mt to a current level of $520/mt (CFR), despite the dimished quantity. For the coming week, affected by the other products, the market is expected to decline slightly, while the northern market will continue to see the lowest price.