China's domestic medium plate market has continued to decline over the past week, with a minor climb observed in market inventory levels after the National Day holidays.
Product name |
Specification |
Category |
Average price (RMB/mt) |
Weekly change (RMB/mt) |
Price ($/mt) |
Weekly change ($/mt) |
Common carbon medium plate |
20 mm |
Q235 |
3,427 |
-36 |
502 |
-5 |
Low alloy medium plate |
20 mm |
Q345 |
3,630 |
-15 |
532 |
-2 |
16 mm |
CCS A/B |
3,957 |
-243 |
580 |
-36 |
In spite of increased inquiries, actual trading activity has not indicated any improvement in the post-holiday market. It is reported that certain medium plate purchases have been made by some downstream customers in the southern China market; however, the purchasing volume in question is very small compared with previous years. Although medium plate inventory did not soar as sharply as hot rolled inventory during the holidays, it has still contributed to a certain atmosphere of panic in the market due to concerns that the decrease observed in HRC prices may have some direct impact on the medium plate market.
Given the production cuts previously implemented by many second tier plate producers and also taking into account the still high levels of slab prices, ex-factory prices of medium plate from second tier mills are now at around RMB 3,580/mt ($525/mt), much higher than the current market levels. In this context, the mills in question have called a halt to their operations in order to avoid suffering losses at the present market prices. On the other hand, continuing to maintain their production at normal levels, domestic first tier mills have abundant inventories in hand against the background of the flat sales performance. It is heard that some mills have granted discounted prices to their agents and given out special prices for big deals for the purpose of stimulating their sales. In this connection, some low-price materials are expected to be seen in the market in the coming period, and a certain degree of confusion is expected to be seen as regards market quotations as traders will have bought their materials at various prices.
As regards the future, the Chinese medium plate market is likely to retain its mild downward movement. Considering the cost factor, the possibility of a sharp slump in market prices is slim, but the downward trend is expected to continue in the long run.