Chinese NGO electrical steel market dim
2017-12-07 08:49:40 [Print]
BEIJING (Asian Metal) 7 Dec 17 - Chinese non-grain oriented electrical steel prices are generally stable for the time being mainly supported by the low market inventory and high purchase cost, but the market sales performance continues to be bad on weak customer demand. The current mainstream market price of B50A800 0.5mm*1,200mm*C from Baosteel is about RMB6,100/t (USD922/t) VAT included by D/P in Shanghai. Insiders do not think the market will recover in the near future.
A Shanghai-based distributor of non-grain oriented electrical steel reported to Asian Metal that market keeps quiet at present. His price of B50A800 0.5mm*1,200mm*C from Baosteel is RMB6,100/t (USD922/t) VAT included, stable compared with that of last trading day.
With a sales volume of less than 50tpd against that of 1,500-2,000t for last month, the source said the market sales performance remains poor at the moment under customers' cautious attitude. According to him, seeing the continuous price decrease in previous days, customers without urgent need for materials are expecting the price to drop further and placing orders sparingly. "I reduced the price by about RMB200/t (USD30/t) last month," he explained. Like other traders, the source is not optimistic about the market outlook and he has decreased the stockpile to less than 600t. Considering Baosteel's list price of B50A800 0.5mm*1,200mm*C for December production is as high as RMB6,200/t (USD938/t), he does not think the price will go down in the following days.
Another trader in Wuhan, Hubei province confirmed the dim market. His price of 50WW800 0.5mm*1,200mm*C from WISCO is RMB5,700/t (USD862/t) VAT included, the same as that of last trading day.
As prices of other steel products like rebar went up obviously these days, the source keeps his prices unchanged at the moment though demand from customers does not show any signs of becoming better. "Some downstream customers have to reduce or quit production affected by the environmental protection inspection and they just purchase the material in small quantities for urgent need," he said, adding that his current sales volume is below 20tpd against that of around 500t for last month. In order to avoid risks, the source just holds a small stockpile of 300t in hand and he can deliver the material from WISCO directly if customers place orders with him. He does not expect the market to improve in the following days.
A Shanghai-based distributor of non-grain oriented electrical steel reported to Asian Metal that market keeps quiet at present. His price of B50A800 0.5mm*1,200mm*C from Baosteel is RMB6,100/t (USD922/t) VAT included, stable compared with that of last trading day.
With a sales volume of less than 50tpd against that of 1,500-2,000t for last month, the source said the market sales performance remains poor at the moment under customers' cautious attitude. According to him, seeing the continuous price decrease in previous days, customers without urgent need for materials are expecting the price to drop further and placing orders sparingly. "I reduced the price by about RMB200/t (USD30/t) last month," he explained. Like other traders, the source is not optimistic about the market outlook and he has decreased the stockpile to less than 600t. Considering Baosteel's list price of B50A800 0.5mm*1,200mm*C for December production is as high as RMB6,200/t (USD938/t), he does not think the price will go down in the following days.
Another trader in Wuhan, Hubei province confirmed the dim market. His price of 50WW800 0.5mm*1,200mm*C from WISCO is RMB5,700/t (USD862/t) VAT included, the same as that of last trading day.
As prices of other steel products like rebar went up obviously these days, the source keeps his prices unchanged at the moment though demand from customers does not show any signs of becoming better. "Some downstream customers have to reduce or quit production affected by the environmental protection inspection and they just purchase the material in small quantities for urgent need," he said, adding that his current sales volume is below 20tpd against that of around 500t for last month. In order to avoid risks, the source just holds a small stockpile of 300t in hand and he can deliver the material from WISCO directly if customers place orders with him. He does not expect the market to improve in the following days.
