Chinese NGO electrical steel demand remains weak
2017-12-21 08:56:41 [Print]
BEIJING (Asian Metal) 21 Dec 17 - Chinese non-grain oriented electrical steel demand continues to be weak at present, but prices are generally stable mainly supported by the high purchase cost and low market inventory. The current mainstream market price of B50A600 0.5mm*1,200mm*C from Baosteel is about RMB6,200/t (USD940/t) VAT included by D/P in Shanghai. Insiders do not think the market will improve in the following days.
A Shanghai-based distributor of non-grain oriented electrical steel reported to Asian Metal that the market keeps quiet for the time being. His price of B50A600 0.5mm*1,200mm*C from Baosteel is RMB6,200/t (USD940/t) VAT included, stable compared with that of last trading day.
According to the source, as it is the traditionally low season now, downstream customers without urgent need for materials are just holding a wait-and-see attitude and refusing to place orders. However, with an inventory of no more than 500t, he just has two grades of 600 and 470 in hand now. "There is no high sales pressure and I will not reduce the price in the near future," he said, adding that he did not order new materials recently due to the continuous price decrease in previous months. With a current sales volume of below 30tpd against that of around 1,000t for last month, the source does not suppose the market will recover in the coming days.
Another trader in Wuhan, Hubei province confirmed the sluggish market. His price of 50WW800 0.5mm*1,200mm*C from WISCO is RMB5,750/t (USD872/t) VAT included, the same as that of last trading day.
With a sales volume of less than 10tpd against that of around 300t for last month, the source revealed that some downstream customers can not keep the regular production due to the environmental protection inspection and they just purchase the material in small quantities for urgent need. Like other traders, he only holds a small stockpile of below 100t in hand now to avoid risks and materials can be delivered from WISCO directly if customers place orders with him. However, considering the purchase cost of 50WW800 0.5mm*1,200mm*C from WISCO is no less than RMB5,700/t (USD864/t), the source does not intend to reduce his price in the next few days.
A Shanghai-based distributor of non-grain oriented electrical steel reported to Asian Metal that the market keeps quiet for the time being. His price of B50A600 0.5mm*1,200mm*C from Baosteel is RMB6,200/t (USD940/t) VAT included, stable compared with that of last trading day.
According to the source, as it is the traditionally low season now, downstream customers without urgent need for materials are just holding a wait-and-see attitude and refusing to place orders. However, with an inventory of no more than 500t, he just has two grades of 600 and 470 in hand now. "There is no high sales pressure and I will not reduce the price in the near future," he said, adding that he did not order new materials recently due to the continuous price decrease in previous months. With a current sales volume of below 30tpd against that of around 1,000t for last month, the source does not suppose the market will recover in the coming days.
Another trader in Wuhan, Hubei province confirmed the sluggish market. His price of 50WW800 0.5mm*1,200mm*C from WISCO is RMB5,750/t (USD872/t) VAT included, the same as that of last trading day.
With a sales volume of less than 10tpd against that of around 300t for last month, the source revealed that some downstream customers can not keep the regular production due to the environmental protection inspection and they just purchase the material in small quantities for urgent need. Like other traders, he only holds a small stockpile of below 100t in hand now to avoid risks and materials can be delivered from WISCO directly if customers place orders with him. However, considering the purchase cost of 50WW800 0.5mm*1,200mm*C from WISCO is no less than RMB5,700/t (USD864/t), the source does not intend to reduce his price in the next few days.
