Medium plate prices take step back

Medium plate prices take step back

Chinese medium plate prices decreased gradually over the past week and the transaction volume did not change much. Common carbon plate inventory in the Shanghai and Lecong markets was low; therefore, there was not much business activity. In the Tianjin market, transaction volume was at a normal level due to plenty of market inventory, the bulk of which was from Tianjin Steel. By the end of trading on Tuesday, November 15, the price of 16mm medium plate was RMB 2’993/mt ($370/mt), RMB 60/mt ($7/mt) lower than that of the previous Tuesday. The price of 16mm low ally plate had fallen RMB 60/mt ($7/mt) over the course of the week to RMB 3’055/mt ($378/mt). Traders in the Shanghai and Lecong markets indicated that not many products were available in the market. The short supply is a result of prolonged low market prices and a lack of orders, both of which led to steelmakers to reduce their output. There were new batches of extremely heavy plate, heavy plate and medium plate products totaling 2.7329 million metric tons in September, a month-on-month decline of 107’100 metric tons, or 3.77 percent. With the exception of Tianjin Steel, products from steelmakers such as Shanghai No.3 Steel Plant, Shaoguan Steel, Liuzhou Steel, Nanjing Steel and Jiuquan Steel were in short supply. Traders in the Lecong market report that it is difficult to place orders with Shuanguan Steel due to its low inventory. Though inventory in both steel mills and the market was relatively low, demand was bearish. Few transactions took place in the Shanghai and Lecong markets, and not many people made inquiries. The price drop in the Tianjin market is because of Tianjin Steel’s high inventory. However, traders report that the transaction volume was at a normal level. Some traders in the Shanghai and Lecong markets decided to sell other products due to the protracted softening in the medium plate market. Traders hold a pessimistic view towards the future of the market, and most of them think the current price level is already low, leaving little room for a decrease. Therefore, prices might see fluctuations in the short term, as there is no encouraging factor to support the price increase. SteelOrbis Shanghai