Chinese HR strip prices move up
2016-08-23 08:57:42 [Print]
BEIJING (Asian Metal) 23 Aug 16 - Chinese HR strip prices witness an upward trend for the time being mainly supported by higher raw material costs and increase in steel mills’ list prices. Current mainstream market prices of Q195 (232-355)mm*2.5mm*C in Tianjin and Guangzhou are about RMB2,710/t (USD426/t) and RMB2,810/t (USD441/t) VAT included respectively. Insiders do not think the price will go up further in the next few days due to weak customer demand.
A distributor of HR strip in Tianjin with a trading volume of about 50,000t in 2015 told Asian Metal that the price is rising at present. His price for Q195 315mm*2.5mm*C from Tianjin Steel is RMB2,710/t (USD426/t) VAT included, up by RMB50/t (USD8/t) compared with that of the previous trading day.
The source attributes the price increase to higher purchase cost. According to him, because of the price increase of steel billet, the raw material, Tianjin Steel raised the list price for Q195 (232-355)mm*2.5mm*C by RMB30/t (USD5/t) on August 22 to RMB2,690/t (USD423/t) VAT included. “The price of steel billet Q235 150mm*150mm in Tangshan, Hebei province went up by RMB50/t (USD8/t) last weekend to about RMB2,270/t (USD357/t) VAT included,” he said. However, customers with no urgent need for materials are still holding a wait-and-see attitude now and refuse to place orders. His current sales volume remains at no more than 100tpd against that of about 3,000t for last month. The source does not expect the price to climb further in the following days and he just holds an inventory of below 1,000t in hand now.
Another Guangzhou-based HR strip trader confirmed the price increase. His price for Q195 335mm*2.5mm*C from Ruifeng Steel is RMB2,810/t (USD441/t) VAT included, RMB30/t (USD5/t) higher than that of the previous trading day.
Following the price increase in North China, the source also lifted his prices this week. “I normally regard the price trend in Hebei province as the benchmark,” he said, adding that Qianjin Steel in Langfang increased the price of Q195 (232-355)mm*2.5mm*C by RMB50/t (USD8/t) in the past three days to RMB2,710/t (USD426/t) VAT included. However, with a current sales volume of less than 50tpd against that of around 2,000t in July, the source complained that demand from downstream customers keeps weak amid the traditionally low season and the market sales performance is quite poor. Holding a stockpile of about 600t in hand now, the source thinks the market will continue to be quiet in the next few days.
A distributor of HR strip in Tianjin with a trading volume of about 50,000t in 2015 told Asian Metal that the price is rising at present. His price for Q195 315mm*2.5mm*C from Tianjin Steel is RMB2,710/t (USD426/t) VAT included, up by RMB50/t (USD8/t) compared with that of the previous trading day.
The source attributes the price increase to higher purchase cost. According to him, because of the price increase of steel billet, the raw material, Tianjin Steel raised the list price for Q195 (232-355)mm*2.5mm*C by RMB30/t (USD5/t) on August 22 to RMB2,690/t (USD423/t) VAT included. “The price of steel billet Q235 150mm*150mm in Tangshan, Hebei province went up by RMB50/t (USD8/t) last weekend to about RMB2,270/t (USD357/t) VAT included,” he said. However, customers with no urgent need for materials are still holding a wait-and-see attitude now and refuse to place orders. His current sales volume remains at no more than 100tpd against that of about 3,000t for last month. The source does not expect the price to climb further in the following days and he just holds an inventory of below 1,000t in hand now.
Another Guangzhou-based HR strip trader confirmed the price increase. His price for Q195 335mm*2.5mm*C from Ruifeng Steel is RMB2,810/t (USD441/t) VAT included, RMB30/t (USD5/t) higher than that of the previous trading day.
Following the price increase in North China, the source also lifted his prices this week. “I normally regard the price trend in Hebei province as the benchmark,” he said, adding that Qianjin Steel in Langfang increased the price of Q195 (232-355)mm*2.5mm*C by RMB50/t (USD8/t) in the past three days to RMB2,710/t (USD426/t) VAT included. However, with a current sales volume of less than 50tpd against that of around 2,000t in July, the source complained that demand from downstream customers keeps weak amid the traditionally low season and the market sales performance is quite poor. Holding a stockpile of about 600t in hand now, the source thinks the market will continue to be quiet in the next few days.
