Under the influence of the obvious rise in the Chinese domestic hot rolled market, medium plate prices in the various regions in China have seen a gradual recovery over the past week.
Product name | Specification | Category | Average price (RMB/mt) | Weekly change (RMB/mt) | Price($/mt) | Weekly change ($/mt) |
Common carbon medium plate | 20 mm | Q235 | 3,657 | +60 | 535 | +9 |
Low alloy medium plate | 20 mm | Q345 | 3,805 | +80 | 557 | +12 |
16 mm | CCS A/B | 3,943 | +83 | 577 | +12 |
In the wake of the announcement of the considerable hike made by Baosteel to its August medium plate prices, most Chinese mills have followed suit and successively raised their ex-factory prices of medium plate for the month of July by margins ranging from RMB 80/mt ($12/mt) to RMB 100/mt ($15/mt). For instance, Zhaoshun Steel made an upward adjustment of RMB 100/mt ($15/mt) to its plate prices from early July levels. After the increase, the producer's price of 14-20 mm Q235 medium plate is at RMB 3,730/mt ($546/mt), while its price of 14-20 mm Q345 is at RMB 3,880/mt ($568/mt). Meanwhile, Chunye Steel increased its prices by RMB 80/mt ($12/mt), with its price of 14-20 mm Q235 climbing to RMB 3,700/mt ($542/mt). Changda Steel also hiked its medium plate prices by RMB 100/mt ($15/mt), with its new price of 14-20 mm Q235 at RMB 3,760/mt ($550/mt).
Generally speaking, the overall increases observed in mills' prices have boosted confidence levels in the market. In this context, medium plate prices in Shanghai registered a remarkable jump in the past week, though no improvement was seen in the trading volume. In Lecong and Tianjin, since hot rolled prices were almost RMB 100/mt ($15/mt) higher than medium plate prices, traders began to raise their prices for medium plate accordingly.
As a result of the obvious increase in the domestic hot rolled market, hot rolled prices in various regions in China are now higher than medium plate prices. As a result, most mills have lately preferred to produce hot rolled coils, leading to both reduced supplies and increased prices of slab. With deals for imported slab in the Chinese market becoming increasingly rare, and also taking into account the high prices of domestic slab, rolling mills in China are now facing rising costs for the production of medium plate.