Upward fluctuations for Chinese medium plate prices

Upward fluctuations for Chinese medium plate prices

Chinese medium plate prices slightly increased over the past week thanks to low inventory. The small quantities of product that arrived in the markets one after the other last week were just enough to balance out the sales volume; therefore, the low inventory situation did not change much. Compared to the previous week, by the end of trading on Tuesday, November 22, 16mm Q235B had risen RMB 27/mt ($4/mt) to RMB 3’020/mt ($373/mt), while 16mm Q345B had risen RMB 25/mt ($3/mt) to RMB 3’080/mt ($381/mt). The market condition in the Shanghai and Lecong markets did not pick up all throughout the past week. Many traders indicated that inquiries were few and far between. However, the commercial activity in the Tianjin market was at a normal level. The demand for medium plate went up after the price fall on Wednesday, November 16. Following the better transaction situation, some specifications were in short supply in the Tianjin market. The output reduction by steelmakers was a chief factor leading to the low market inventory. According to some traders, products they ordered last month arrived in small quantities. The continuous arrival of new batches of products did not supplement the market inventory by any obvious measure. Market sources report that Xin Yu Steel seldom sold its products, and they could not be purchased in the Lecong market, except for 6mm products. Agents of Xin Yu Steel report that not many products from Xin Yu arrived in the Shanghai market this month, and few specifications could be found in the current market inventory. Pressures on Tianjin Steel were alleviated as it sold its products to the Shanghai market in the previous week. This is one of the reasons that led to the short supply in the Tianjin market. Xi Cheng Steel suspended its production of medium plate and stopped putting products into the market due to cost pressures. Thus, prices were stable and even went up slightly because of the low inventory situation in the market. Not many business activities took place in spite of the current low inventory. The recent decrease in hot rolled sheet/coil prices also influenced the medium plate prices. Xi Cheng Steel resumed production due to the rise in medium plate prices. Xin Yu Steel’s products will be put into the markets next month, and its prices will not be high because of its aim to enhance its market share. This will have a great impact on the market. The medium plate price is expected to be stable next week. However, there is a possibility for prices to fluctuate as steelmakers put their products into the market. Thus, the market will continue to experience pressure. SteelOrbis Shanghai