Chinese NGO electrical steel prices stable
2017-12-14 08:57:10 [Print]
BEIJING (Asian Metal) 14 Dec 17 - Chinese non-grain oriented electrical steel prices are generally stable at present mainly supported by the high purchase cost and low market inventory, although demand from customers remains weak. The current mainstream market price of 50WW800 0.5mm*1,200mm*C from WISCO is about RMB5,900/t (USD892/t) VAT included by D/P in Shanghai. Insiders suppose the market will keep quiet in the coming days.
A Shanghai-based distributor of non-grain oriented electrical steel reported to Asian Metal that the price is stable for the time being. His price of 50WW800 0.5mm*1,200mm*C from WISCO is RMB5,900/t (USD892/t) VAT included, the same as that of last trading day.
According to the source, domestic steel producers such as Baosteel, WISCO and Ansteel all announced to keep their list prices of NGO electrical steel stable for January production this week. Therefore, though demand from customers does not become better, he is not likely to reduce his prices in the near future due to the high purchase cost. "The list price of 50WW800 0.5mm*1,200mm*C from WISCO for December and January production is about RMB6,000/t (USD907/t)," he said. With a sales volume of no more than 50tpd against that of around 2,000t for last month, the source said customers without urgent need for materials are still taking a cautious attitude now and refusing to place orders. He does not expect the market to improve in the following days and his current inventory is below 500t.
Another trader in Foshan, Guangdong province confirmed the stable price. His price of 50AW800 0.5mm*1,200mm*C from Ansteel is RMB5,900/t (USD892/t) VAT included, unchanged compared with that of last trading day.
The source expressed that the low market inventory also supports the price to be stable at the moment. According to him, because of the high purchase cost and the continuous price decrease in previous months, traders are not confident of the market outlook and refuse to build large stockpiles. "We have decreased the contract volume with steel mills by more than 50% these two months," he said, adding that his current inventory is no more than 1,000t against that of above 4,000t in the first half of this year. Besides, some downstream customers have to reduce or quit production due to the environmental protection inspection and their demand for NGO electrical steel is unlikely to be released in the short term. With a sales volume of less than 100tpd against that of around 3,000t for last month, the source supposes the price will keep stable in the coming days.
A Shanghai-based distributor of non-grain oriented electrical steel reported to Asian Metal that the price is stable for the time being. His price of 50WW800 0.5mm*1,200mm*C from WISCO is RMB5,900/t (USD892/t) VAT included, the same as that of last trading day.
According to the source, domestic steel producers such as Baosteel, WISCO and Ansteel all announced to keep their list prices of NGO electrical steel stable for January production this week. Therefore, though demand from customers does not become better, he is not likely to reduce his prices in the near future due to the high purchase cost. "The list price of 50WW800 0.5mm*1,200mm*C from WISCO for December and January production is about RMB6,000/t (USD907/t)," he said. With a sales volume of no more than 50tpd against that of around 2,000t for last month, the source said customers without urgent need for materials are still taking a cautious attitude now and refusing to place orders. He does not expect the market to improve in the following days and his current inventory is below 500t.
Another trader in Foshan, Guangdong province confirmed the stable price. His price of 50AW800 0.5mm*1,200mm*C from Ansteel is RMB5,900/t (USD892/t) VAT included, unchanged compared with that of last trading day.
The source expressed that the low market inventory also supports the price to be stable at the moment. According to him, because of the high purchase cost and the continuous price decrease in previous months, traders are not confident of the market outlook and refuse to build large stockpiles. "We have decreased the contract volume with steel mills by more than 50% these two months," he said, adding that his current inventory is no more than 1,000t against that of above 4,000t in the first half of this year. Besides, some downstream customers have to reduce or quit production due to the environmental protection inspection and their demand for NGO electrical steel is unlikely to be released in the short term. With a sales volume of less than 100tpd against that of around 3,000t for last month, the source supposes the price will keep stable in the coming days.
