North leads price fall in plate market

SteelOrbis Shanghai Over the past week, the Chinese medium plate market saw a distinct price difference among the markets of different regions. The northern market took the initiative in dropping down, while the markets in the southern regions showed a slighter downward trend. With this weak price performance, the trading volume was also quite sluggish. On November 7, the average price of 16mm Q235 B in Shanghai, Tianjin and Lecong decreased RMB 80/mt ($10) week on week to RMB 3,550/mt ($451), while that of 16 mm Q345 B was down RMB 90/mt ($11) to RMB 3,660/mt ($464). The northern market had already begun to see a decline the previous week. With a significant fall, the market speeded up its downward movement throughout the past week. By the end of the week, the daily price fall had increased from RMB 10/mt ($1) for the previous period to RMB 40-50/mt ($5-6). The Tianjin market even broke the RMB 3,500/mt ($444) mark. The rapid drop in the northern region resulted in a distinct contrast in prices between the northern and southern regions, with the price difference reaching RMB 200/mt ($25). Furthermore, the low prices in Tianjin also attracted purchasing interest from some traders and end-users from other regions, leading to a slight increase in trading volume. As regards the southern market, prices in most regions moved steadily downwards. Leading markets like Shanghai and Lecong were stable after a small decrease at the beginning of the week. On the imports and exports side, market sources have reported that in recent days, the exports of several large mills in eastern China such as Xinyu Steel, Nanjing Steel and Shanghai Steel totaled 30,000-40,000 mt and above for each month. For the next week, it is thought that the northern market will see a slowdown in its downward movement. If northern supplies flow into the southern regions, then the prices in the southern market will be affected to a certain extent. Generally, the overall market will remain in the current downward trend.