Chinese non-grain oriented electrical steel prices remains upward
2016-11-10 08:54:41 [Print]
BEIJING (Asian Metal) 10 Nov 16 - Chinese non-grain oriented electrical steel prices are still going up for the time being mainly because of higher raw material costs and low market inventory. The current mainstream price of B50A800 0.5mm*1,200mm*C from Baosteel is about RMB5,400/t (USD799/t) VAT included in Shanghai. Insiders think the price may go up further in the next few days.
A Shanghai-based distributor of non-grain oriented electrical steel with a trading volume of about 50,000t in 2015 reported to Asian Metal that the price of B50A800 0.5mm*1,200mm*C from Baosteel is about RMB5,400/t (USD799/t) VAT included, up by about RMB300/t (USD44/t) compared with that of last week.
The source attributes the price increase to higher raw material costs. According to him, the market price of cold rolled coil SPCC 1.0mm*1,250mm*C in Shanghai soared by about RMB500/t (USD74/t) this month to RMB4,250-4,300/t (USD629-636/t) VAT included. However, with a sales volume of less than 100tpd against that of about 3,000t for last month, the source complained the market sales performance continues to be poor at the moment under customers’ wait-and-see attitude. “Seeing the sharp price increase, customers without urgent need for materials refuse to place orders now,” he said. With an inventory of about 1,000t, the source supposes the price is likely to increase further in the following days.
Another trader in Wuhan, Hubei province confirmed the price increase. His price of 50WW800 0.5mm*1,200mm*C from WISCO is RMB5,300/t (USD784/t) VAT included, RMB250/t (USD37/t) higher than that of last week.
The source said the low market inventory is another reason for the price increase. “Steel mills are mainly supplying downstream customers now and the supply to traders decreases obviously,” he said, adding that his current stockpile is just 300t, much lower than the regular one of above 500t. Nevertheless, many customers can not accept the continuous price increase and just take a cautious attitude towards the market outlook. With a sales volume of less than 20tpd against that of about 500t in October, the source thinks the market will remain quiet in the coming days on weak customer demand.
A Shanghai-based distributor of non-grain oriented electrical steel with a trading volume of about 50,000t in 2015 reported to Asian Metal that the price of B50A800 0.5mm*1,200mm*C from Baosteel is about RMB5,400/t (USD799/t) VAT included, up by about RMB300/t (USD44/t) compared with that of last week.
The source attributes the price increase to higher raw material costs. According to him, the market price of cold rolled coil SPCC 1.0mm*1,250mm*C in Shanghai soared by about RMB500/t (USD74/t) this month to RMB4,250-4,300/t (USD629-636/t) VAT included. However, with a sales volume of less than 100tpd against that of about 3,000t for last month, the source complained the market sales performance continues to be poor at the moment under customers’ wait-and-see attitude. “Seeing the sharp price increase, customers without urgent need for materials refuse to place orders now,” he said. With an inventory of about 1,000t, the source supposes the price is likely to increase further in the following days.
Another trader in Wuhan, Hubei province confirmed the price increase. His price of 50WW800 0.5mm*1,200mm*C from WISCO is RMB5,300/t (USD784/t) VAT included, RMB250/t (USD37/t) higher than that of last week.
The source said the low market inventory is another reason for the price increase. “Steel mills are mainly supplying downstream customers now and the supply to traders decreases obviously,” he said, adding that his current stockpile is just 300t, much lower than the regular one of above 500t. Nevertheless, many customers can not accept the continuous price increase and just take a cautious attitude towards the market outlook. With a sales volume of less than 20tpd against that of about 500t in October, the source thinks the market will remain quiet in the coming days on weak customer demand.
