Chinese medium plate prices post temporary stability

Wednesday, 26 August 2009 16:35:01 (GMT+3)   |  

Following its previous sharp drop, the Chinese medium plate market gradually became stable during the past week, though a certain degree of confusion was seen as regards market quotations.

Product name

Specification

Category

Average price (RMB/mt)

Weekly change (RMB/mt)

Price

($/mt)

Weekly change ($/mt)

Common carbon medium plate

20 mm

Q235

3,770

-83

552

-12

Low alloy medium plate

20 mm

Q345

3,900

-105

571

-15

Shipbuilding plate

16 mm

CCS A/B

4,283

-17

627

-2

China's domestic medium plate market was in general characterized by fluctuations over the past week. The market first remained on its sliding trend at the beginning of the week before rebounding slightly under the influence of hot rolled prices and mills' ex-factory prices; finally, towards the end of the past week market prices gradually calmed down and started to move on a stable trend. It remains to be seen whether market prices move up or down when the current temporary stability comes to an end.

During the past week, some eastern-based mills adjusted their settlement prices for August up to the level of RMB 3,900/mt ($571/mt), helping to strengthen market prices. However, lacking support from market demand, it is difficult for medium plate prices to climb up.

Coming up to the end of August, traders are starting to make payments to the mills; however, given the availability of capital in the current market, traders are not under pressure to sell off materials at lower prices in order to bring in cash.

On the import and export side, China's medium plate exports in July reached 220,400 mt, down 626,300 mt or 73.97 percent year on year, totaling $121 million in value, down $791 million or 86.74 percent compared with the same month last year. The average export price was $548.83/mt. Total January-July exports reached 1.5739 million mt, down 3.3443 million mt or 68 percent, amounting to a total value of $1.287 billion, down $3.229 billion or 71.5 percent year on year.

Medium plate imports in July stood at 102,600 mt, up 1,400 mt or 1.34 percent year on year, totaling $131 million, down $49 million or 27.29 percent compared with the same month last year. Total January-July medium plate imports came to 697,500 mt, down 30,500 mt or 4.18 percent, amounting to $1.075 billion in value, down $67 million or 5.89 percent year on year.


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