Medium plate sees fall in supply

SteelOrbis Shanghai The Chinese medium plate market was stable during the course of the past week, which the trading volume saw a slight revival. On December 12, the average price of Q235 B grade 16 mm in Shanghai, Tianjin and Lecong was at RMB 3,567/mt ($456/mt), while that of Q345 B grade 16 mm was at RMB 3,665/mt ($468/mt) - both prices neutral week on week. During the week gone by, market supply was at a low level in eastern and southern China because of overhauling work at local mills, in addition to other factors. While supplies from the northern regions played an active part in the market, transportation problems made flow into the southern market difficult. Yingkou and other mills retained relatively high price levels in the eastern market. Prices in the northern regions still stayed down, especially in Tianjin and its surrounding area. Some traders indicated that commercial activities were beginning to take a turn for the better, however prices did not see any big rise. Influenced by the price trend of HR and other products, the soft tendency of medium plate found some relief, with a slight increase in some local markets. Market sources reported that steel mill exports continued their rapid growth, especially for exports of shipbuilding plate and other plate varieties. Most mills transferred their attention from common plate to other varieties, and this is also an inevitable trend for the plate market. As for the period ahead, the critical issue is transportation. Once the transportation problem is resolved and northern products are able to flow into the southern region, prices in eastern and southern China will certainly see a downward slide. However, the market may keep moving steadily up in the short term.