Mainstream ex-China steel plate offer prices from mills have been heard at $470-490/mt FOB for late May shipment as of today, Monday, March 23, edging down by $2.5/mt on average week on week. Due to the improved situation in the local market, Chinese steelmakers were unwilling to cut steel plate export prices at first, but low demand abroad has put pressure on sentiment. As a result, deals for plate could be transacted at not above $460/mt FOB, sources said.
Demand from overseas users has slackened due to the worsening outbreak of the coronavirus abroad, which has exerted a negative impact on the steel plate exports.
The inventories in the local steel plate market have declined slightly in the given week, but are still at relatively high levels. Accordingly, traders have still been willing to cut sales prices and thus bring in cash as soon as possible.
Average Q235 20 mm steel plate spot prices in China have edged down by RMB 23/mt ($3.2/mt) week on week to RMB 3,673/mt ($517.8/mt) ex-warehouse, according to SteelOrbis’ information.
As of March 23, HRC futures at the Shanghai Future Exchange are standing at RMB 3,257/mt ($459/mt), decreasing by RMB 249/mt ($35/mt) or 7.1 percent since March 16.
$1 = RMB 7.094
