The Chinese medium plate market was characterized by a general stability during the past week, with certain signs of softness observed in some regions.
Product name | Specification | Category | Average price (RMB/mt) | Weekly change (RMB/mt) | Price ($/mt) | Weekly change ($/mt) |
Common carbon medium plate | 20 mm | Q235 | 3,597 | -10 | 527 | -1 |
Low alloy medium plate | 20 mm | Q345 | 3,725 | -30 | 545 | -5 |
16 mm | CCS A/B | 3,860 | - | 565 | - |
Following its previous ascension, China's domestic medium plate market started to indicate a certain slackness of commercial activity during the past week. Meanwhile, with successive arrivals of new materials in various markets, the sufficiency of market supplies has meant that it is more difficult for the market to climb up. While prices of first tier materials have been showing stable movement, market prices of second and third tiers materials have been rising continuously towards the price levels of first tier materials, boosted by the relatively high slab prices. In recent days, Chinese rolling mills have been complaining a lot about the high slab prices both in the domestic and international markets, as they are finding it very difficult to afford such high costs.
Last week, an obvious slowdown was observed in trading activities in both the southern and northern markets. It is said that some traders have had to sell their products at below normal price levels in the context of such a bearish trading performance. Moreover, despite the stable movement of China's domestic medium plate market in recent days, quotations have begun to show a certain softness and are likely to move down in the near future.
In addition, Baosteel has made an upward adjustment of RMB 200/mt ($29/mt) to its medium plate price for August, with its new price for wide and heavy plate staying at RMB 3,450/mt ($505/mt, excluding tax). Meanwhile, Magang has hiked its low alloy plate prices by RMB 30/mt ($4/mt) and has maintained its common carbon plate prices unchanged for early July. Various second tier mills in eastern China also issued their July prices in succession in the past week, announcing increase margins of RMB 20-50/mt ($3-7/mt); the general ex-factory prices after the adjustment mostly stand at RMB 3,650/mt ($534/mt). Generally speaking, despite the signs of a slide in market prices, the Chinese medium plate market is unlikely to fall by a big margin considering the central government's continuing loose monetary policy and the support provided by steady ex-factory prices.