During the week ending January 19, steel plate prices have continued their uptrend in the Chinese domestic market, without any improvement in the lackluster demand situation. As of January 19, average prices of steel plates in the main Chinese regions are as follows:
Product name |
Specification |
Category |
Average price (RMB/mt) |
Weekly change (RMB/mt) |
Price ($/mt) |
Weekly change ($/mt) |
Common carbon medium plate |
20 mm |
Q235 |
4,890 |
+30 |
743 |
+5 |
Low alloy medium plate |
20 mm |
Q345 |
5,050 |
+75 |
767 |
+11 |
Shipbuilding plate |
16 mm |
CCS A/B |
5,163 |
+66 |
785 |
+10 |
Market players pessimistic on prospects for medium plate prices after New Year holiday
On the medium plate side, the steel mills' hikes of their ex-mill prices of medium plate products for February have been followed by medium plate price increases from domestic traders. Meanwhile, there has been no big change in market inventory levels. Given the higher-priced new arrivals of medium plate, as well as the reports that many medium plate producers plan to carry out overhauls after the New Year holiday, many traders are unwilling to compromise in price negotiations due to their pessimism on the prospects for the medium plate market in the post-holiday period. At the same time, end-users have been purchasing just in order to meet their essential needs as they believe that medium plate prices could come down after the holiday.
Slight increase in Chinese shipbuilding plate prices supported by traders' low inventories
Turning to the shipbuilding plate market, while a slight increase has been seen in shipbuilding plate prices, few bookings have been made by either traders or end-users. The upticks observed in shipbuilding plate prices have been supported by the low shipbuilding plate inventory levels held by domestic traders.
In the past week, Liaoning Province-based Chinese steel producer Anshan Steel announced an increase of RMB 300/mt ($45/mt) in its shipbuilding plate offers for February. Thus, Anshan Steel's list price of CCSA 20 mm shipbuilding plate has risen to RMB 4,640/mt ($705/mt) ex-mill, excluding 17 percent VAT. Another domestic steel producer, Jiangxi Province-based Xinyu Iron and Steel, has kept its shipbuilding plate offers unchanged for February. At present, CCSA 16-20 mm shipbuilding plate produced by Xinyu Iron and Steel is priced at RMB 5,230/mt ($784/mt), including 17 percent VAT.
As the Spring Festival approaches, most steel enterprises will start to withdraw from the steel plate market. Therefore, no big changes are likely to be seen in China's steel plate market in the coming period.