The steep fall in the local market and huge futures price declines in China have affected ex-China heavy plate prices and prices have not hit the bottom yet, market sources believe.
Mainstream ex-China steel plate offer prices from mills have been heard at $750-760/mt FOB for August shipment as of today, Monday, June 20, moving down by $30/mt compared to June 13.
Reference deal prices have been heard at $740/mt FOB to South America and Southeast Asia, though this level has already been called “overpriced”, given that SS400 HR coils from China have already been sold at $100/mt lower. Market sources believe that this week the workable level for plate from China will be in the range of $700-710/mt FOB.
During the given week, steel plate prices in the Chinese domestic market have moved down amid the continuous declines in HRC futures prices. Amid the lifting of the lockdown in Shanghai, demand for steel plate did not improve as quickly as market players had expected, which exerted a negative impact on the steel market. At the same time, inventory levels have risen, also weakening the support for steel plate prices. It is thought that steel plate prices in the Chinese domestic market will soften, though at a slower declining pace, in the coming week.
Average Q235 20 mm steel plate spot prices in China have moved down by RMB 280/mt ($42/mt) compared to June 13, falling to RMB 4,720/mt ($703/mt) ex-warehouse, according to SteelOrbis’ information.
As of June 20, HRC futures at the Shanghai Futures Exchange are standing at RMB 4,220/mt ($629/mt), decreasing by RMB 560/mt ($83.5/mt) or 11.7 percent since June 13.
$1 = RMB 6.712
