Market players cautious on plate market rebound

SteelOrbis Shanghai The plate supply from the leading mills for the domestic market is still low. These mills prefer to produce for exports, because the prices are higher in international market. With the continuous low stock level, Chinese medium plate market saw a slight rebound last week. On September 5, the average price of 16 mm Q235 B in Shanghai, Tianjin and Lecong increased RMB 70/mt ($9) to RMB 3,623/mt ($456) and that of 16 mm Q345 B is up RMB 40/mt ($5) to RMB 3,760/mt ($473). Sources reported that the rapid increase in the supply from medium-sized mills in short term may influence the market prices to a certain extent. Although the statistics indicated the remarkable growth in new market supply resources for the second half year, it is observed that most of the new supply will be medium plate and special plate and there will not be a big increase in supply of common carbon and low alloy plate. In recent weeks, steel mills' prices are in slow rise. In spite of the insufficient momentum for rise in Lecong and other regions, the prices hike of steel mills can always drive up the market prices. This indicates that, in consideration of costs and other factors, traders determined the market prices according to the price list of steel mills. The market players are very cautious about the market. Without a definite factor for rise, the price pressure in the future makes those traders not dare to raise the prices. In such a background of balance between supply and demand, most traders want to keep the market stable first and then seek for the opportunities for going up. For the next week, the market is expected to move steadily up, but the increase range will not be big. Furthermore, the increase in supply from the medium-sized mills will expand the price gap between different supplies.