Flat performance in Chinese medium plate market

SteelOrbis Shanghai The medium plate market showed steady movement over the last week, with the northern regions seeing a definite positive trend. The trading volume, meanwhile, remained at a normal level. On January 31, the average price of 20 mm Q235 B in Shanghai, Tianjin and Lecong has risen RMB 43/mt ($5.5) week on week to RMB 3,963/mt ($510), while that of 20 mm Q345 B was up RMB 65/mt ($8.4) to RMB 4,090/mt ($526). Against a background of flat commercial activity, the mills' new prices had a greater impact on the market. In the northern region, Tianjin Steel raised its ex-factory prices twice in succession, thus contributing the most to the average price increase seen in medium plate throughout the past week. However, compared with the previous price increases, the market saw a slowdown in its upward trend. Currently, market players are quite cautious about the future outlook. The rumors regarding the export rebate adjustment are now causing some of them to change their optimistic views on the market. As regards imports and exports, due to the high price level in the domestic market, some exporters have adopted a wait-and-see stance and so are not giving out quotations. Sources report that the export quotations issued for 20mm Q235 by some small mills are at $475-485/mt FOB. The figures for December released by the China Iron & Steel Association last week indicated that Chinese medium plate exports saw remarkable growth in December compared with the previous month. Chinese medium plate exports in December rose 305.25 percent year on year to 726,413 mt, up 269,618 mt or 59.02 percent month on month. Meanwhile, total medium plate exports for 2006 reached 4.181625 million mt, up 166.56 percent year on year. Imports in December increased 16.37 percent year on year to 92,884 mt, up 2,790 mt or 3.09 percent month on month. Total 2006 imports reached 116,799 mt, down 89.89 percent year on year. In consideration of the present unsettled market atmosphere, the prices are expected to continue fluctuating slightly over the next week.