Chinese section steel market warms
2023-03-02 08:23:51 [Print]
BEIJING (Asian Metal) 2 Mar 23 - With the demand from downstream industries increasing, the domestic section steel market warms up gradually this week. Presently, the prevailing prices of angle steel Q235 50mm*50mm*5mm hover at RMB4,350/t (USD627/t) and RMB4,560/t (USD658/t) D/P net weight respectively in Tianjin and Guangzhou, and those of channel steel Q235 160mm*65mm*8.5mm stand at RMB4,560/t (USD658/t) in Chengdu, similar to Tuesday. Insiders believe prices of section steel might go up in the following several days in view of the improving market performance.
"Most downstream plants resuming production, and the demand increases day by day. We sold 300t of angle steel Q235 50mm*50mm*5mm at RMB4,350/t (USD627/t) on Tuesday, while just sold 100-200t a day in the middle of February," noted a trader in Tianjin. In the meantime, he revealed that the rising prices of raw materials such as iron ore, coal and coke strengthen the confidence of market participants to some degree. "Steel mills in Tangshan keep eager to raise prices of section steel boosted by the rising production costs, but we endeavor to close deals to withdraw capitals," added the trader. Upon the bullish atmosphere in the market, he deems prices of section steel might rise by RMB10-20/t (USD1.4-2.8/t) in the coming several days.
Holding around 2,000t in stock, the trader sold around 7,000t in February, up from 4,000t in January. With the typical monthly sales volume of 10,000t, he recorded the total sales volume of around 63,000t in 2022.
"Some peers lifted prices by RMB30/t (USD4.2/t) boosted by the bullish atmosphere in the market and the rising prices of raw materials, but we maintain prices flat temporarily to promote sales," disclosed a trader in Guangzhou. Offering RMB4,560/t (USD658/t) without concession for angle steel Q235 50mm*50mm*5mm, the trader sold around 300t on Tuesday, and last sold 500t at the same price on Monday, while just sold 100t or so in early February. "Stimulated by the rising prices of steel mills in North China, end users purchase actively. Besides, the demand increases with construction projects restarting operation," added the trader. Given the warmer market, he predicts slight price increase in the coming several days.
Based on the regular sales volume of 10,000tpm, the trader recorded the sales volume of around 6,000t in February, against 3,000t in January. The trader roughly sold 100,000t in 2022, with around 10,000t of inventories right now.
A trader in Chengdu, Sichuan reports a recovering market following the improving demand. "Regular clients send inquiries actively seeing the upward price trend of steel mills and those of raw materials. A customer ordered 200t of channel steel Q235 160mm*65mm*8.5mm at RMB4,560/t (USD658/t) on Tuesday, while he just bought 50-100t at one single time in early February," revealed the trader, offering RMB4,560/t (USD658/t) without concession for channel steel Q235 160mm*65mm*8.5mm at RMB4,560/t (USD658/t). Meanwhile, he disclosed that some peers lifted prices boosted by the improving sales performance, but he preferred to reduce stocks and did not follow suit. Considering that both steel mills and traders keep eager to move up prices, the trader foresees rising prices of section steel in the upcoming several days.
Presently, the trader holds around 6,000t in stock, up from 1,000t in early February. He sold around 4,000t in February, against 3,000t in January. With the typical monthly sales volume of 6,000t, the trader sold around 70,000t in total in 2022.
"Most downstream plants resuming production, and the demand increases day by day. We sold 300t of angle steel Q235 50mm*50mm*5mm at RMB4,350/t (USD627/t) on Tuesday, while just sold 100-200t a day in the middle of February," noted a trader in Tianjin. In the meantime, he revealed that the rising prices of raw materials such as iron ore, coal and coke strengthen the confidence of market participants to some degree. "Steel mills in Tangshan keep eager to raise prices of section steel boosted by the rising production costs, but we endeavor to close deals to withdraw capitals," added the trader. Upon the bullish atmosphere in the market, he deems prices of section steel might rise by RMB10-20/t (USD1.4-2.8/t) in the coming several days.
Holding around 2,000t in stock, the trader sold around 7,000t in February, up from 4,000t in January. With the typical monthly sales volume of 10,000t, he recorded the total sales volume of around 63,000t in 2022.
"Some peers lifted prices by RMB30/t (USD4.2/t) boosted by the bullish atmosphere in the market and the rising prices of raw materials, but we maintain prices flat temporarily to promote sales," disclosed a trader in Guangzhou. Offering RMB4,560/t (USD658/t) without concession for angle steel Q235 50mm*50mm*5mm, the trader sold around 300t on Tuesday, and last sold 500t at the same price on Monday, while just sold 100t or so in early February. "Stimulated by the rising prices of steel mills in North China, end users purchase actively. Besides, the demand increases with construction projects restarting operation," added the trader. Given the warmer market, he predicts slight price increase in the coming several days.
Based on the regular sales volume of 10,000tpm, the trader recorded the sales volume of around 6,000t in February, against 3,000t in January. The trader roughly sold 100,000t in 2022, with around 10,000t of inventories right now.
A trader in Chengdu, Sichuan reports a recovering market following the improving demand. "Regular clients send inquiries actively seeing the upward price trend of steel mills and those of raw materials. A customer ordered 200t of channel steel Q235 160mm*65mm*8.5mm at RMB4,560/t (USD658/t) on Tuesday, while he just bought 50-100t at one single time in early February," revealed the trader, offering RMB4,560/t (USD658/t) without concession for channel steel Q235 160mm*65mm*8.5mm at RMB4,560/t (USD658/t). Meanwhile, he disclosed that some peers lifted prices boosted by the improving sales performance, but he preferred to reduce stocks and did not follow suit. Considering that both steel mills and traders keep eager to move up prices, the trader foresees rising prices of section steel in the upcoming several days.
Presently, the trader holds around 6,000t in stock, up from 1,000t in early February. He sold around 4,000t in February, against 3,000t in January. With the typical monthly sales volume of 6,000t, the trader sold around 70,000t in total in 2022.
