Thai HRC prices up
2016-04-22 08:49:15 [Print]
BEIJING (Asian Metal) 22 Apr 16 - HRC prices go up slightly in Thailand right after the Songkran Festival (April 13-15) because of tight supply and prices soar in peripheral markets, with a markup of THB500/t (USD14.3/t). Currently the mainstream price of SS400 3.0mm*1,250mm*C from local mills is THB19,500/t (USD556/t) 7% Vat excluded. Insiders foresee a firm price next week.
A trader in Ayutthaya told Asian Metal that his price for SS400 3.0mm*1,250mm*C from local mills is THB19,500/t (USD556/t) 7% Vat excluded, increasing by THB500/t (USD14.3/t) compared with last week.
Holding a stock of 1,000t at hand against 1,500t of last year, the source attributes the price rise to the overall low stockpile. According to him, local HRC producers are not under full operation for the moment due to the financial problem. In addition, local government restricts imports, both leading to tight supply to the market and stimulating traders to hike prices in succession, despite a slow market. With the current sales volume of 20tpd against 50tpd in March, the source revealed that purchasing activities have not been restarted yet after the holiday and the market performs inactively for the moment. Therefore, he does not think the HRC price will go up further in the near future, with the total sales volume of 900t last month.
Another trader in Muang claimed his price for SS400 3.0mm*1,250mm*C from local mills is THB19,500/t (USD556/t) 7% Vat excluded, rising by THB500/t (USD14.3/t) over last week.
According to the source, prices soar in the international market especially in China is another main reason for the current price increase in Thailand. “I heard that export prices from Chinese mills rose by USD25-30/t again this week after a markup of USD30/t last week, and mills are fermenting for another price hike,” he added. Nevertheless, the source complained that downstream demand remains insufficient since there are limited projects under progress, making the HRC price powerless to increase again in the short term. His current sales volume is just 70tpd, against 150tpd in late March. With a stock of 4,000t at hand, he sold 3,000t last month.
A trader in Ayutthaya told Asian Metal that his price for SS400 3.0mm*1,250mm*C from local mills is THB19,500/t (USD556/t) 7% Vat excluded, increasing by THB500/t (USD14.3/t) compared with last week.
Holding a stock of 1,000t at hand against 1,500t of last year, the source attributes the price rise to the overall low stockpile. According to him, local HRC producers are not under full operation for the moment due to the financial problem. In addition, local government restricts imports, both leading to tight supply to the market and stimulating traders to hike prices in succession, despite a slow market. With the current sales volume of 20tpd against 50tpd in March, the source revealed that purchasing activities have not been restarted yet after the holiday and the market performs inactively for the moment. Therefore, he does not think the HRC price will go up further in the near future, with the total sales volume of 900t last month.
Another trader in Muang claimed his price for SS400 3.0mm*1,250mm*C from local mills is THB19,500/t (USD556/t) 7% Vat excluded, rising by THB500/t (USD14.3/t) over last week.
According to the source, prices soar in the international market especially in China is another main reason for the current price increase in Thailand. “I heard that export prices from Chinese mills rose by USD25-30/t again this week after a markup of USD30/t last week, and mills are fermenting for another price hike,” he added. Nevertheless, the source complained that downstream demand remains insufficient since there are limited projects under progress, making the HRC price powerless to increase again in the short term. His current sales volume is just 70tpd, against 150tpd in late March. With a stock of 4,000t at hand, he sold 3,000t last month.
