In the week ending January 12, steel plate prices in the Chinese domestic market have indicated a sharper declining trend compared to the previous week, while overall transaction activity in the market has generally been at low levels. Average steel plate prices in China can be viewed in the SteelOrbis price reports section.
During the given week, since demand for steel plate has been slack and as more new supplies have arrived in the market, inventory levels in the market are now on the high side, causing traders to lower their prices. Currently, the average price of steel plate from northern Chinese steelmakers stands at RMB 2,500/mt ($403/mt), resulting in a significant decline in cost prices for traders in the coming period, which will exert a negative impact on the spot market.
Meanwhile, with raw material prices at low levels, domestic steel plate producers still have decent profit margins and so they are not inclined to reduce their production activities. Demand appears unlikely to improve in the short term. It is expected that steel plate prices in the Chinese domestic market will continue their decreasing trend in the coming week as lower-cost supplies from northern China continue to move into the market in the south of the country.