Chinese steel plate market moves up, traders more confident

Monday, 06 February 2012 16:56:33 (GMT+3)   |  

During the past week, the Chinese steel plate market has moved on a rising trend, while overhauls by producers give reason for optimism for the short-term. Average prices of steel plate in the Chinese market can be viewed in the SteelOrbis price reports section.

Most traders have now returned to the market after the Spring Festival holiday. Traders have generally increased their prices; however, due to weak end-user demand, some of them have had to make slight downward price adjustments in order to stimulate orders and bring in cash.

The main domestic steel plate producers have increased their prices, while overhaul works planned by some mills will provide some support for the market. Shaogang Iron and Steel plans to commence the overhaul of its heavy plate production line from February 10, and this is expected to lead to a shortfall of 100,000 mt in output. At the same time, its other steel plate line will operate at a limited capacity utilization rate. On the other hand, Tianjin Steel will start the overhaul of a steel plate production line after mid-February. Due to such factors, traders are now more confident on the prospects for the future market trend.

It is expected that China's steel plate market will continue to trend up in the coming week.


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