After undergoing a considerable increase in previous weeks, China's domestic medium plate market has gradually slowed down its upward movement in recent days. Additionally, domestic players have lately been expecting that China's medium plate export market will receive a boost from the recovery in the international market.
Product name | Specification | Category | Average price (RMB/mt) | Weekly change (RMB/mt) | Price ($/mt) | Weekly change ($/mt) |
Common carbon medium plate | 20 mm | Q235 | 3,607 | +17 | 528 | +2 |
Low alloy medium plate | 20 mm | Q345 | 3,755 | +30 | 550 | +5 |
16 mm | CCS A/B | 3,860 | +27 | 565 | +4 |
In northern China, local prices of medium plate are now gradually approaching the levels in the eastern regions. Influenced by the increased slab prices and the transportation difficulties in the north, market prices in the northern regions have picked up remarkably in recent days. However, many traders have remarked that despite the ascension of prices the market has failed to see any improvement in trading activity, with the result that they have not made much profit during the upward price movement. Given the inadequate trading volume, market players have started to be concerned that medium plate prices may drop down after the increase.
As regards the eastern and southern regions, medium plate inventories showed a minor reduction over the past week. It is generally believed that the future market will not see any big increase such as seen previously, but will remain on a positive trend. Recently, most leading mills have announced their latest prices of medium plate, basically above the level of RMB 3,600/mt ($527/mt), which seems higher compared with the current market prices.
At present, the medium plate market in China looks quite weak, with prices of long products and hot rolled coils higher than those of medium plate. Mills capable of producing both long products and medium plate have lately been moving to reduce their medium plate production so as to increase their long products output, on account of the robust market demand for both rebar and wire rod. In June the capacity utilization ratio of 17 northern-based medium plate lines stood at over 94 percent, while in Jiangsu Province 11 privately-owned medium plate producers, of which nine are rolling mills, only operated at less than 60 percent capacity.
In addition, the international medium plate market has also been showing signs of recovery in recent days. It is heard that POSCO is scheduled to raise its medium plate production for Q3 and Q4 to 2.5 million mt and 2.7 million mt respectively.