Chinese non-grain oriented electrical steel prices remain upward
2016-12-15 09:04:36 [Print]
BEIJING (Asian Metal) 15 Dec 16 - Chinese non-grain oriented electrical steel prices are going up at present mainly supported by increase in steel mills’ list prices. The current mainstream price of B50A800 0.5mm*1,200mm*C from Baosteel is about RMB6,800/t (USD985/t) VAT included in Shanghai. Insiders suppose the price may increase further in the following days but the market will remain quiet on weak customer demand.
A Wuhan-based distributor of non-grain oriented electrical steel with a trading volume of about 20,000t in 2015 reported to Asian Metal that the price of 50WW600 0.5mm*1,200mm*C from WISCO is RMB6,700/t (USD970/t) VAT included, up by about RMB200/t (USD29/t) compared with that of last trading day.
The source attributes the price increase to higher purchase cost. According to him, WISCO announced to raise the list price of non-grain oriented electrical steel by RMB936/t (USD136/t) for January production on 13th December and that for 50WW600 0.5mm*1,200mm*C reached RMB7,289.1/t (USD1,056/t). However, seeing the continuous price increase, customers without urgent need for materials are mostly taking a cautious attitude now and placing orders sparingly. With a sales volume of less than 10tpd against that of about 500t in November, the source thinks the market will continue to be quiet in the coming days. He holds a stockpile of below 100t in hand now to avoid risks.
Another trader Shanghai confirmed the price increase. His price of B50A800 0.5mm*1,200mm*C from Baosteel is RMB6,800/t (USD985/t) VAT included, RMB200/t (USD29/t) higher than that of last trading day.
According to the source, Baosteel also increased the list price of non-grain oriented electrical steel by RMB936/t (USD136/t) for January production and he followed suit. “I have lifted the price by a total of RMB900/t (USD130/t) this month,” he said. However, many customers can not accept the sharp price increase in the short term and refuse to place orders at the moment. His current sales volume is no more than 10tpd against that of about 600t for last month. Holding an inventory of less than 100t in hand now, the source believes the price may go up further in the following days but demand from customers is hard to be released.
A Wuhan-based distributor of non-grain oriented electrical steel with a trading volume of about 20,000t in 2015 reported to Asian Metal that the price of 50WW600 0.5mm*1,200mm*C from WISCO is RMB6,700/t (USD970/t) VAT included, up by about RMB200/t (USD29/t) compared with that of last trading day.
The source attributes the price increase to higher purchase cost. According to him, WISCO announced to raise the list price of non-grain oriented electrical steel by RMB936/t (USD136/t) for January production on 13th December and that for 50WW600 0.5mm*1,200mm*C reached RMB7,289.1/t (USD1,056/t). However, seeing the continuous price increase, customers without urgent need for materials are mostly taking a cautious attitude now and placing orders sparingly. With a sales volume of less than 10tpd against that of about 500t in November, the source thinks the market will continue to be quiet in the coming days. He holds a stockpile of below 100t in hand now to avoid risks.
Another trader Shanghai confirmed the price increase. His price of B50A800 0.5mm*1,200mm*C from Baosteel is RMB6,800/t (USD985/t) VAT included, RMB200/t (USD29/t) higher than that of last trading day.
According to the source, Baosteel also increased the list price of non-grain oriented electrical steel by RMB936/t (USD136/t) for January production and he followed suit. “I have lifted the price by a total of RMB900/t (USD130/t) this month,” he said. However, many customers can not accept the sharp price increase in the short term and refuse to place orders at the moment. His current sales volume is no more than 10tpd against that of about 600t for last month. Holding an inventory of less than 100t in hand now, the source believes the price may go up further in the following days but demand from customers is hard to be released.
