Continuing its rising movement China's domestic medium plate market moved on an uptrend in the first half of the week, but then started to register a correction under the influence of falling local prices of rebar and HRC.
Product name |
Specification |
Category |
Average price (RMB/mt) |
Weekly change (RMB/mt) |
Price ($/mt) |
Weekly change ($/mt) |
Common carbon medium plate |
20 mm |
Q235 |
4,177 |
-40 |
612 |
-6 |
Low alloy medium plate |
20 mm |
Q345 |
4,390 |
-35 |
643 |
-5 |
16 mm |
CCS A/B |
4,383 |
-14 |
642 |
-2 |
Over the past week the considerable drop in local rebar prices first affected the domestic hot rolled market. Then both the falling rebar and hot rolled prices combined to exert a downward influence on local medium plate prices, which previously had been boosted by the rebar and HRC markets. Although medium plate prices have only shown a moderate correction, the trend of the market has now changed from up to down. Considering the strong increases recorded previously, the market correction is expected to continue over a certain period of time.
Previously when the market was continuously on the rise, some optimistic traders held on to their stocks in expectation of greater profits, while others preferred to cash in their materials due to the concerns that the surging prices would be followed by a slump. With the correction seen in the past week, China's domestic medium plate market has shown a certain degree of confusion as regards quotations. Market prices of materials of the same specification from the same area may differ remarkably from each other on account of the constrasting price policies announced by various mills, with price differences reaching as high as RMB 100/mt. Some mills have made frequent adjustments to their prices, resulting in rapid increases or decreases in their sales prices.
In spite of the market correction, no obvious improvement has been recorded in market trading, because players are unwilling to buy when prices are on the way down. Many traders think that there is still room for further downward movement in the medium plate market. In addition, as a result of the limited arrivals of new supplies, market inventory levels have decreased slightly compared with the week before. As regards the future, the Chinese medium plate market is expected to continue its decline on a fluctuating trend in the short term.