In the given week, domestic mills generally increased their prices of steel plate and this, combined with insufficient supplies in the market, resulted in an increase in market prices. However, demand has softened and shipment volumes have declined. Traders' offers vary somewhat in line with their different inventory levels. Mainstream prices of 20 mm common carbon medium plate in the Shanghai market are currently in the range of RMB 4,450-4,470/mt ($707-710/mt), while Tangsteel's sales prices at are about RMB 4,400/mt ($699/mt).
On the macroeconomic side, China's GDP growth declined to 8.1 percent in Q1. According to the latest data released on April 12 by the Chinese central bank, new RMB-based loans in March exceeded RMB 1.01 trillion, constituting a 14-month high. Meanwhile, major Chinese banks have started to reduce mortgage interest rates for first-time house buyers. Accordingly, market players believe that anticipated increased liquidity in the second quarter will have a positive impact on the steel market.
China's domestic steel plate market is expected to continue its upward trend in the coming week.