Chinese plate exporters cut prices to stimulate demand, but local rebound to push prices up

Monday, 31 May 2021 16:18:25 (GMT+3)   |   Shanghai

Mainstream ex-China steel plate offer prices from mills have been heard at $930-950/mt FOB for July shipment as of today, Monday, May 31, moving down by $87.5/mt on average compared to May 24. Following the central government’s measures to curb the quick rises in commodity prices, HRC futures prices in China have indicated continuous declines up to late last week, exerting a negative impact on ex-China steel plate prices. The sharp declines in steel plate prices have negatively affected purchases in the local market, and so some steel plate producers have cut offer prices to stimulate their export activities. Some negotiations have been reported at $910-930/mt FOB.

Nevertheless, the recent rebound in the local market from last Thursday is likely to push export plate prices from China up again soon. Chinese downstream users have been cautious in concluding purchases of steel plate. Inventory has not seen big changes, while some steel plate products have been in short supply, providing support for prices. It is expected that steel plate prices in the Chinese domestic market will likely move sideways in the coming week.

Average Q235 20 mm steel plate spot prices in China have gained RMB 126/mt ($19.8/mt) week on week to RMB 5,706/mt ($896/mt) ex-warehouse, according to SteelOrbis’ information.

As of May 31, HRC futures at the Shanghai Futures Exchange are standing at RMB 5,354/mt ($841/mt), increasing by RMB 38/mt ($6/mt) or 0.7 percent since May 24.

$1 = RMB 6.3682

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