Chinese section steel prices stable
2023-04-13 08:17:39 [Print]
BEIJING (Asian Metal) 13 Apr 23 - Both producers and traders maintained prices of section steel flat on Wednesday, with wait-and-see attitudes towards the market prospect. The current mainstream prices of angle steel Q235 50mm*50mm*5mm hover at RMB4,090/t (USD594/t), RMB4,350/t (USD632/t) and RMB4,400/t (USD639/t) D/P respectively in Tangshan, Shanghai and Guangzhou. Insiders foresee stable prices in the coming several days seeing the watchful atmosphere in the market.
"The market calmed down on Wednesday after the short-term boom on Tuesday afternoon, and we tend to maintain prices flat, with wait-and-see attitudes towards the market prospect," noted a producer in Tangshan, offering RMB4,100/t (USD595/t) with the concession of RMB10/t (USD1.5/t) for angle steel Q235 50mm*50mm*5mm. He last sold 20,000t of the material at RMB4,090/t (USD594/t) on Tuesday, while just sold 10,000t or so at the same price on Wednesday. "The demand from downstream industries remains steady, and the purchasing activities of end users fluctuate following the price change," added the producer. Given the firm production costs, he predicts stable prices of section steel in the forthcoming several days.
Based on an annual production capacity of 2.8 million tons, the producer estimates that the output in April would reach 230,000t, identical to March. It produced about 680,000t in the first quarter of 2023 and 2.8 million tons in 2022. Presently, the producer holds around 250,000t of stocks.
"We stopped decreasing prices of section steel on Wednesday following steel mills in North China," revealed a trader in Shanghai, quoting RMB4,350/t (USD632/t) without concession for angle steel Q235 50mm*50mm*5mm. "The market performance showed signs of improving on Tuesday following the short-term optimistic attitudes of end users, and we sold around 500t of the material at RMB4,350/t (USD632/t) on Tuesday, while just sold 300t on Monday," added the trader. In the meantime, he disclosed that the demand from downstream industries remains soft, and may shrink further in the following weeks with the arrival of the rainy season. Discouraged by the sluggish demand, the trader adopts pessimistic attitude towards the market prospect and worries about a price decrease of section steel in the coming several days.
The trader might sell 9,000t in April, down from 10,000t in March. Based on the regular monthly sales volume of 12,000t, he roughly sold 28,000t in the first quarter of 2023, against 140,000t in 2022. The trader holds approximately 9,000t of inventories at present.
"We moved up prices slightly by RMB10/t (USD1.5/t) boosted by the bullish atmosphere in the market on Tuesday afternoon, but maintained prices flat on Wednesday as the market calmed down gradually," disclosed a trader in Guangzhou. Quoting RMB4,420/t (USD642/t) for angle steel Q235 50mm*50mm*5mm, he could accept RMB4,400/t (USD639/t) for orders of above 200t. The trader sold about 400t of the material at RMB4,400/t (USD639/t) on Tuesday, but just sold 100t at the same price on Wednesday. "End users still show little confidence in the market prospect, and the demand from downstream industries remains soft," noted the trader. Given the firm prices from steel mills, the trader does not plan to cut prices and forecasts flat prices of section steel in the upcoming several days.
Holding around 2,000t of stocks, the trader would sell 5,000t in April, similar to March. With the typical monthly sales volume of 7,000t, he roughly sold 14,000t in the first quarter of 2023 and 80,000t in 2022.
"The market calmed down on Wednesday after the short-term boom on Tuesday afternoon, and we tend to maintain prices flat, with wait-and-see attitudes towards the market prospect," noted a producer in Tangshan, offering RMB4,100/t (USD595/t) with the concession of RMB10/t (USD1.5/t) for angle steel Q235 50mm*50mm*5mm. He last sold 20,000t of the material at RMB4,090/t (USD594/t) on Tuesday, while just sold 10,000t or so at the same price on Wednesday. "The demand from downstream industries remains steady, and the purchasing activities of end users fluctuate following the price change," added the producer. Given the firm production costs, he predicts stable prices of section steel in the forthcoming several days.
Based on an annual production capacity of 2.8 million tons, the producer estimates that the output in April would reach 230,000t, identical to March. It produced about 680,000t in the first quarter of 2023 and 2.8 million tons in 2022. Presently, the producer holds around 250,000t of stocks.
"We stopped decreasing prices of section steel on Wednesday following steel mills in North China," revealed a trader in Shanghai, quoting RMB4,350/t (USD632/t) without concession for angle steel Q235 50mm*50mm*5mm. "The market performance showed signs of improving on Tuesday following the short-term optimistic attitudes of end users, and we sold around 500t of the material at RMB4,350/t (USD632/t) on Tuesday, while just sold 300t on Monday," added the trader. In the meantime, he disclosed that the demand from downstream industries remains soft, and may shrink further in the following weeks with the arrival of the rainy season. Discouraged by the sluggish demand, the trader adopts pessimistic attitude towards the market prospect and worries about a price decrease of section steel in the coming several days.
The trader might sell 9,000t in April, down from 10,000t in March. Based on the regular monthly sales volume of 12,000t, he roughly sold 28,000t in the first quarter of 2023, against 140,000t in 2022. The trader holds approximately 9,000t of inventories at present.
"We moved up prices slightly by RMB10/t (USD1.5/t) boosted by the bullish atmosphere in the market on Tuesday afternoon, but maintained prices flat on Wednesday as the market calmed down gradually," disclosed a trader in Guangzhou. Quoting RMB4,420/t (USD642/t) for angle steel Q235 50mm*50mm*5mm, he could accept RMB4,400/t (USD639/t) for orders of above 200t. The trader sold about 400t of the material at RMB4,400/t (USD639/t) on Tuesday, but just sold 100t at the same price on Wednesday. "End users still show little confidence in the market prospect, and the demand from downstream industries remains soft," noted the trader. Given the firm prices from steel mills, the trader does not plan to cut prices and forecasts flat prices of section steel in the upcoming several days.
Holding around 2,000t of stocks, the trader would sell 5,000t in April, similar to March. With the typical monthly sales volume of 7,000t, he roughly sold 14,000t in the first quarter of 2023 and 80,000t in 2022.
