Chinese medium plate prices again decline on back of sluggish trading

Wednesday, 08 April 2009 10:37:09 (GMT+3)   |  
       

Faced with poor sales and scarce inquiries, China's domestic plate sellers have had to continuously cut their prices in an attempt to attract buyers, but only to see little improvement in downstream demand.

Product name

Specification

Category

Average price (RMB/mt)

Weekly change (RMB/mt)

Price($/mt)

Weekly change ($/mt)

Common carbon medium plate

20 mm

Q235

3,250

-83

476

-12

Low alloy medium plate

20 mm

Q345

3,325

-110

487

-16

Shipbuilding plate

16 mm

CCS A/B

3,750

-123

549

-18

Last week, the northern China medium plate market first moved on a stable trend before registering an obvious drop. During the Pure Brightness Festival (April 4-6), some sellers who were still operating lowered their prices by RMB 30/mt ($4/mt) on a daily basis. As a result, when the market reopened on April 7, the post-holiday prices were approximately RMB 100/mt ($15/mt) lower than the pre-holiday levels.

The markets in the east and south failed to register as sharp a drop as the northern market over the past week, though the two markets in question also declined. Due to the significant price difference of about RMB 300/mt ($44/mt) between the south and north, some northern supplies flowed into the southern regions, where they cost at least RMB 100/mt ($15/mt) less than the local supplies and have had the effect of increasing inventory pressure on the southern China market.

According to the latest statistics, medium plate inventory at the beginning of April recorded an increase of 35 percent year on year. This year, medium plate inventory in China has consistently been on the increase. In this context, more and more mills have started to take appropriate measures. Shougang plans to implement a 20 percent cut in medium plate production in April at its Qinghuadao production base and has already started overhauling work at the medium plate lines at its Beijing plant. Meanwhile, Baotou Steel is scheduled to overhaul its medium plate line during the period from April 13 to April 23, with an estimated drop in production of about 30,000 mt, and this mill will also arrange overhauling for its slab production line from April 13 to April 27. Tianjin Steel is also heard to have overhauled its production lines in recent days. Additionally, in the month of April, Liuzhou Steel and Shaoguan Steel will continue their policy of producing only to fill orders they have received.

On the export side, since the latest export rebate adjustment has not affected common carbon medium plate, the hopes of an export rebate for the product in question have been shattered. At present, quotations of boron-added medium plate - produced only by a small number of manufacturers currently - stand at $450/mt FOB, but as yet there are no takers. However, if this type of plate can be exported as alloyed steel and benefit from a 13 percent rebate, more producers may be expected to begin production of this material. Currently, Chinese Q235 common carbon plate is offered at $470/mt FOB, which is not very attractive in the international market.


Similar articles

Germany’s Dillinger expands ultra-heavy plate production

17 Nov | Steel News

Tosyalı Algerie targets 1.4 million mt of steel exports in 2022

30 Jun | Steel News

ASEAN expects short-lived small impact on steel trade from Russia-Ukraine war

19 May | Steel News

Vitkovice Steel to pause deliveries amid slab supply disruptions

06 May | Steel News

India’s Bhilai steel mill and MDNL produce special alloy steel slabs for space vehicles

14 Apr | Steel News

How will the US steel industry fare under the Biden administration?

09 Nov | Steel News

Mexico to renew 15 percent import tariff

26 Feb | Steel News

Mexico declines to renew 15 percent import tariff

05 Feb | Steel News

JSW USA restarts Ohio EAF mill

18 Dec | Steel News

US flats mills ordered to produce documentation for Section 232 exclusion objections

20 Sep | Steel News