Thai HRC market dim
2023-04-27 08:18:23 [Print]
BEIJING (Asian Metal) 27 Apr 23 - As downstream customers hold back from purchasing discouraged by the downward price trend both at home and abroad, the HRC market in Thailand runs slowly at the moment. The present prevailing prices of HRC SS400 3.0mm*1,500mm stand at THB25,000-26,300/t (USD731-769/t) D/P in warehouse Bangkok, down by THB200/t (USD3/t) from late last week. Insiders believe prices of HRC would edge down further in the coming several days upon the pessimistic atmosphere in the market.
"Seeing the quick price drop in major HRC supplying countries, we remain not in a hurry to buy now. Previously, we planned to purchase 100t of HRC this week, but now, we tend to postpone the purchase. At present, suppliers quote THB25,800/t (USD754/t) for HRC SS400 3.0mm*1,500mm, and we could get THB25,600/t (USD749/t) if placing the order," noted a local consumer, who last bought 100t at THB26,000/t (USD760/t) when suppliers offered THB26,200/t (USD766/t) late last week. According to him, prices in China witnessed the quick drop of around USD30/t in recent one week, and mills in other Asian countries moved down May shipment prices by USD40-50/t, dampening their purchasing activities to a large extent. "Normally, suppliers refuse any concession, but they provide kinds of discounts to promote sales now," added the consumer, believing prices of HRC would decrease further in the following several days seeing the bearish atmosphere in the market.
Based on the the monthly consumption capacity of 1,000t, the consumer might consume 500t of HRC in April, down from 700t in March. He roughly used 1,800t of HRC in the first quarter of 2023 and 9,500t in 2022. The consumer holds approximately 100t in inventory right now.
"Regular clients hold back from purchasing in view of the downward price trend in China, and even domestic producers postpone updating prices for May shipment discouraged by the quick prices drop in most other countries," complained a local trader, who did not close any deals after the Songkran Festival holiday. According to him, most participants believe prices of HRC would go down following China, with the prices there down by about USD90/t in recent one month. Besides, end users tend to watch the market before the General Election on May 14. "Regular buyers give no response when we quote THB26,500/t (USD775/t) with the concession of THB200/t (USD3/t) for HRC SS400 3.0mm*1,500mm," added the trader, deeming prices of HRC might decline by THB500/t (USD15/t) or so in the forthcoming several days.
The trader estimates that the sales volume would halve to 1,000t in April from that of March. With the regular monthly sales volume of 2,500t, the trader recorded the sales volume of around 6,000t in the first quarter of 2023, against 28,000t in 2022. He does not hold any stock at the moment.
"Seeing the quick price drop in major HRC supplying countries, we remain not in a hurry to buy now. Previously, we planned to purchase 100t of HRC this week, but now, we tend to postpone the purchase. At present, suppliers quote THB25,800/t (USD754/t) for HRC SS400 3.0mm*1,500mm, and we could get THB25,600/t (USD749/t) if placing the order," noted a local consumer, who last bought 100t at THB26,000/t (USD760/t) when suppliers offered THB26,200/t (USD766/t) late last week. According to him, prices in China witnessed the quick drop of around USD30/t in recent one week, and mills in other Asian countries moved down May shipment prices by USD40-50/t, dampening their purchasing activities to a large extent. "Normally, suppliers refuse any concession, but they provide kinds of discounts to promote sales now," added the consumer, believing prices of HRC would decrease further in the following several days seeing the bearish atmosphere in the market.
Based on the the monthly consumption capacity of 1,000t, the consumer might consume 500t of HRC in April, down from 700t in March. He roughly used 1,800t of HRC in the first quarter of 2023 and 9,500t in 2022. The consumer holds approximately 100t in inventory right now.
"Regular clients hold back from purchasing in view of the downward price trend in China, and even domestic producers postpone updating prices for May shipment discouraged by the quick prices drop in most other countries," complained a local trader, who did not close any deals after the Songkran Festival holiday. According to him, most participants believe prices of HRC would go down following China, with the prices there down by about USD90/t in recent one month. Besides, end users tend to watch the market before the General Election on May 14. "Regular buyers give no response when we quote THB26,500/t (USD775/t) with the concession of THB200/t (USD3/t) for HRC SS400 3.0mm*1,500mm," added the trader, deeming prices of HRC might decline by THB500/t (USD15/t) or so in the forthcoming several days.
The trader estimates that the sales volume would halve to 1,000t in April from that of March. With the regular monthly sales volume of 2,500t, the trader recorded the sales volume of around 6,000t in the first quarter of 2023, against 28,000t in 2022. He does not hold any stock at the moment.
