Chinese section steel prices decrease
2023-03-22 08:22:17 [Print]
BEIJING (Asian Metal) 22 Mar 23 - Discouraged by the prices drop of raw materials as well as the poor sales performance, domestic section steel traders moved down prices on Tuesday. Presently, the prevailing prices of angle steel Q235 50mm*50mm*5mm hover at RMB4,650/t (USD676/t), RMB4,580/t (USD666/t) and RMB4,390/t (USD638/t) D/P net weight respectively in Chengdu, Guangzhou and Tianjin, down by RMB30/t (USD4/t), RMB60/t (USD8/t) and RMB60/t (USD8/t) from Monday. Insiders believe prices of section steel might edge down further in the coming several days seeing the low purchasing activities of end users.
"The sales performance weakened from last week as the continuous price decreases and the bank crisis overseas heightened downstream customers' cautious purchasing attitudes. After tough negotiations, we just sold 200t of angle steel Q235 50mm*50mm*5mm at RMB4,650/t (USD676/t) to a regular customer on Tuesday, and last sold 200t at RMB4,680/t (USD680/t) on Monday, while could sell 500t easily early this month," noted a trader in Chengdu, Sichuan, attributing the price decline to the dim market. According to him, the market performance recovered obviously in early March following downstream projects restarting production, but turned to unsatisfactory since last week dragged by the cautious purchasing attitudes of end users. Upon the low purchasing activities of downstream customers, he worries prices of section steel would go down slightly in the forthcoming several days.
Holding around 5,000t in stock, the trader might sell 9,000t in March, up from 6,000t in February. The sales volume in the first quarter of 2023 would achieve 19,000t. Based on the regular monthly sales volume of 12,000t, the trader totally sold about 140,000t of section steel in 2022.
"Steel mills in North China moved down EXW prices of section steel by RMB40-50/t (USD6-7/t) on Tuesday dragged by the price drop of RMB50/t (USD7/t) for steel billet, and we followed suit," noted a trader in South China. Quoting RMB4,600/t (USD669/t) for angle steel Q235 50mm*50mm*5mm, he could accept RMB4,580/t (USD666/t) at most for orders. "End users tend to purchase in small quantities seeing the continuous price decreases. We just sold 400t of the material at RMB4,580/t (USD666/t) on Tuesday, while the average daily sales volume stood at around 1,000t early this month," added the trader. Given the watchful attitudes of downstream customers, he predicts another price decline of section steel in the coming several days.
With the typical monthly sales volume of 14,000t, the trader estimates that the sales volume would reach 13,000t in March, up from 10,000t in February. He might sell 33,000t in the first quarter of 2023, against 165,000t more or less in 2022, with about 15,000t in stock right now.
"Regular steel mills announced to move down section steel EXW prices by RMB40-50/t (USD6-7/t) on Tuesday dragged by the price decline of RMB50/t (USD6/t) of steel billet. Besides, the market runs quietly, both forcing us to decrease prices," revealed a trader in Tianjin. Offering RMB4,390/t (USD638/t) without concession for angle steel Q235 50mm*50mm*5mm from steel mills in Tangshan, the trader just sold 100t of the material on Tuesday, while could sell 200-300t a day in late February. "The market calmed down gradually this month as most clients built enough materials in February. Besides, facing capital pressures, regular clients hold back from purchasing seeing the continuous price increases in the first half of the month and the sudden price drop in recent one week," explained the trader. The trader shows little confidence in the market prospect and worries about a further price decrease in the upcoming several days.
Presently, the trader holds around 2,000t of stocks. With the regular sales volume of 10,000tpm, he might sell 6,000t in March, down from 7,000t in February. The sales volume in the first quarter of 2023 would reach 17,000t, against 63,000t or so in 2022.
"The sales performance weakened from last week as the continuous price decreases and the bank crisis overseas heightened downstream customers' cautious purchasing attitudes. After tough negotiations, we just sold 200t of angle steel Q235 50mm*50mm*5mm at RMB4,650/t (USD676/t) to a regular customer on Tuesday, and last sold 200t at RMB4,680/t (USD680/t) on Monday, while could sell 500t easily early this month," noted a trader in Chengdu, Sichuan, attributing the price decline to the dim market. According to him, the market performance recovered obviously in early March following downstream projects restarting production, but turned to unsatisfactory since last week dragged by the cautious purchasing attitudes of end users. Upon the low purchasing activities of downstream customers, he worries prices of section steel would go down slightly in the forthcoming several days.
Holding around 5,000t in stock, the trader might sell 9,000t in March, up from 6,000t in February. The sales volume in the first quarter of 2023 would achieve 19,000t. Based on the regular monthly sales volume of 12,000t, the trader totally sold about 140,000t of section steel in 2022.
"Steel mills in North China moved down EXW prices of section steel by RMB40-50/t (USD6-7/t) on Tuesday dragged by the price drop of RMB50/t (USD7/t) for steel billet, and we followed suit," noted a trader in South China. Quoting RMB4,600/t (USD669/t) for angle steel Q235 50mm*50mm*5mm, he could accept RMB4,580/t (USD666/t) at most for orders. "End users tend to purchase in small quantities seeing the continuous price decreases. We just sold 400t of the material at RMB4,580/t (USD666/t) on Tuesday, while the average daily sales volume stood at around 1,000t early this month," added the trader. Given the watchful attitudes of downstream customers, he predicts another price decline of section steel in the coming several days.
With the typical monthly sales volume of 14,000t, the trader estimates that the sales volume would reach 13,000t in March, up from 10,000t in February. He might sell 33,000t in the first quarter of 2023, against 165,000t more or less in 2022, with about 15,000t in stock right now.
"Regular steel mills announced to move down section steel EXW prices by RMB40-50/t (USD6-7/t) on Tuesday dragged by the price decline of RMB50/t (USD6/t) of steel billet. Besides, the market runs quietly, both forcing us to decrease prices," revealed a trader in Tianjin. Offering RMB4,390/t (USD638/t) without concession for angle steel Q235 50mm*50mm*5mm from steel mills in Tangshan, the trader just sold 100t of the material on Tuesday, while could sell 200-300t a day in late February. "The market calmed down gradually this month as most clients built enough materials in February. Besides, facing capital pressures, regular clients hold back from purchasing seeing the continuous price increases in the first half of the month and the sudden price drop in recent one week," explained the trader. The trader shows little confidence in the market prospect and worries about a further price decrease in the upcoming several days.
Presently, the trader holds around 2,000t of stocks. With the regular sales volume of 10,000tpm, he might sell 6,000t in March, down from 7,000t in February. The sales volume in the first quarter of 2023 would reach 17,000t, against 63,000t or so in 2022.
