The Chinese medium plate market climbed up slightly over the past week. Due to the gradual resumption of production by various mills, the medium plate market is expected to register an increase in supply volumes in the near future.
Product name |
Specification |
Category |
Average price (RMB/mt) |
Weekly change (RMB/mt) |
Price ($/mt) |
Weekly change ($/mt) |
Common carbon medium plate |
20 mm |
Q235 |
3,417 |
+7 |
500 |
+1 |
Low alloy medium plate |
20 mm |
Q345 |
3,505 |
- |
513 |
- |
16 mm |
CCS A/B |
3,690 |
+33 |
540 |
+5 |
Following the successive price hikes made by various mills, the costs to traders of purchasing materials have increased by a certain degree. With low-priced materials still available in the market and also given the varying increase margins announced by the mills, market quotations have been characterized by a certain amount of confusion. At present, some medium plate materials from Magang are being offered in the market at the low level of RMB 3,350/mt ($490/mt), which is much lower than this mill's current ex-factory price levels.
As a result of the gradual resumption of production by mills that previously carried out production halts or overhauling work, the market is expected to see strong arrivals of new supplies by the end of June. Moreover, it is reported that Liuzhou Steel is scheduled to produce 150,000 mt of medium plate in the month of July, a rise of 50,000 mt compared with June; meanwhile, Baotou Steel and Yingkou Steel are also to increase their production. All of these developments are likely to bring significant inventory pressure to bear on the future market. In addition, some import materials ordered in March and April when the market was at the bottom will soon arrive in the Chinese market, with the arrival cost mainly at around RMB 3,000/mt ($439/mt).
The main focus of the market has lately been on the rebate adjustment for steel exports, which has also affected medium plate. Since the rebate rate for medium plate has been raised from five percent to nine percent, the likelihood of medium plates being exported has increased; however, due to the 15 percent rebate rate for boron-added materials, exporters are still expected to concentrate mainly on exports of boron-added plates. Some market players have commented that the rebate increase is good news which will tend to help the market to move in an upward direction, but that it is not enough to influence the current market to any great extent.