Chinese HR strip market remains quiet
2016-01-12 09:01:53 [Print]
BEIJING (Asian Metal) 12 Jan 16 – Chinese HR strip market continues to be dim for the time being due to weak consumer demand. Downstream customers are still struggling amid the gloomy economy and traditionally low season and their demand for HR strip is unlikely to be released in the short term. Some HR strip producers like Ruifeng Steel in Tangshan, Hebei province cut their list prices by about RMB20/t (USD3/t) early this week. With the arrival of Chinese New Year, insiders do not expect the market to recover in the following days.
A distributor of HR strip in Tangshan, Hebei province told Asian Metal that the market keeps stagnant at present. His price for Q195 315mm*2.5mm*C from Ruifeng Steel is RMB1,790/t (USD281/t) VAT included, falling by RMB20/t (USD3/t) compared with that of the previous trading day.
The source attributes the price decrease to the lower purchase cost. According to him, Ruifeng Steel moved down the list price of Q195 (232-355)mm*2.5mm*C by RMB20/t (USD3/t) to RMB1,780/t (USD280/t) VAT included on January 11. “I normally regard the price trend of Ruifeng Steel as the benchmark,” he said. However, seeing the downward price trend, customers without urgent need for materials are expecting the price to drop further and refuse to place orders now. His sales volume in the recent week is no more than 60tpd, while that for last month is around 2,000t. Holding no stock in hand to avoid risks, the source said customers should place orders beforehand and all materials need to be delivered from steel mills. He does not suppose the market will recover in the next few days.
Another Guangzhou-based HR strip trader confirmed the sluggish market. His price for Q195 295mm*2.5mm*C from Guofeng Steel is RMB1,990/t (USD313/t) VAT included, stable compared with that of the previous trading day.
The source raised his prices by a total of RMB50/t (USD8/t) last week mainly because of higher raw material costs and the price increase in North China. However, as demand from customers does not increase accordingly, his sales performance remains bad at the moment. “Downstream customers are still struggling amid the gloomy economy and traditionally low season. Some of them are leaving the market for the Spring Festival holiday now,” he said, adding that his current sales volume is less than 100tpd against that of 4,000t for December. Having no confidence in the market outlook, the source has decreased his stock to about 1,000t from that of at least 2,000t in Q3. He is not going to replenish the inventory in the coming month.
A distributor of HR strip in Tangshan, Hebei province told Asian Metal that the market keeps stagnant at present. His price for Q195 315mm*2.5mm*C from Ruifeng Steel is RMB1,790/t (USD281/t) VAT included, falling by RMB20/t (USD3/t) compared with that of the previous trading day.
The source attributes the price decrease to the lower purchase cost. According to him, Ruifeng Steel moved down the list price of Q195 (232-355)mm*2.5mm*C by RMB20/t (USD3/t) to RMB1,780/t (USD280/t) VAT included on January 11. “I normally regard the price trend of Ruifeng Steel as the benchmark,” he said. However, seeing the downward price trend, customers without urgent need for materials are expecting the price to drop further and refuse to place orders now. His sales volume in the recent week is no more than 60tpd, while that for last month is around 2,000t. Holding no stock in hand to avoid risks, the source said customers should place orders beforehand and all materials need to be delivered from steel mills. He does not suppose the market will recover in the next few days.
Another Guangzhou-based HR strip trader confirmed the sluggish market. His price for Q195 295mm*2.5mm*C from Guofeng Steel is RMB1,990/t (USD313/t) VAT included, stable compared with that of the previous trading day.
The source raised his prices by a total of RMB50/t (USD8/t) last week mainly because of higher raw material costs and the price increase in North China. However, as demand from customers does not increase accordingly, his sales performance remains bad at the moment. “Downstream customers are still struggling amid the gloomy economy and traditionally low season. Some of them are leaving the market for the Spring Festival holiday now,” he said, adding that his current sales volume is less than 100tpd against that of 4,000t for December. Having no confidence in the market outlook, the source has decreased his stock to about 1,000t from that of at least 2,000t in Q3. He is not going to replenish the inventory in the coming month.
