Thai HRC price to go down slightly
2016-05-19 08:57:41 [Print]
BEIJING (Asian Metal) 19 May 16 - HRC prices keep temporarily stable in Thailand at the moment, but traders are worried about a price decline in the near future seeing downward price trend in peripheral markets. Currently the mainstream price of SS400 3.0mm*1,250mm*C from local mills is around THB19,000/t (USD533/t) 7% Vat excluded. Insiders foresee a slight price decrease next week.
A trader in Ayutthaya told Asian Metal that his price for SS400 3.0mm*1,250mm*C from local mills is THB19,000/t (USD533/t) 7% Vat excluded, similar to last week.
With the current sales volume of 20tpd against the projected level of 30-40tpd, the source reported a quite market, coupled with participants’ wait-and-see attitudes. Noted by him, the downstream demand shrinks much with the arrival of the rainy season, and it is hard to conclude deals now. In the meantime, price drops in peripheral markets especially those in China heighten Thai end users’ cautious attitudes, and they refuse to purchase in large quantities. Holding a stock of 1,000t at hand against 1,500t during the corresponding period of last year, the source does not plan to replenish the inventory in following two weeks, not being confident of the market outlook. He sold 900t totally in April.
Another trader in Muang claimed his price for SS400 3.0mm*1,250mm*C from local mills is THB19,000/t (USD533/t) 7% Vat excluded, equivalent to last week.
The source deems the HRC price is likely to go down in the short term in view of downward purchasing costs. According to him, HRC export prices from mills in China, one of the major origins for Thai HRC, declined by at least USD20/t over last week to USD410/t FOB China this week. With the current sales volume of 30tpd half of the projected level, the source shows no confidence in the market outlook. Currently he just holds a stock of 2,000t for HRC, while it was around 5,000t in past years. His sales volume was 1,000t last month.
A trader in Ayutthaya told Asian Metal that his price for SS400 3.0mm*1,250mm*C from local mills is THB19,000/t (USD533/t) 7% Vat excluded, similar to last week.
With the current sales volume of 20tpd against the projected level of 30-40tpd, the source reported a quite market, coupled with participants’ wait-and-see attitudes. Noted by him, the downstream demand shrinks much with the arrival of the rainy season, and it is hard to conclude deals now. In the meantime, price drops in peripheral markets especially those in China heighten Thai end users’ cautious attitudes, and they refuse to purchase in large quantities. Holding a stock of 1,000t at hand against 1,500t during the corresponding period of last year, the source does not plan to replenish the inventory in following two weeks, not being confident of the market outlook. He sold 900t totally in April.
Another trader in Muang claimed his price for SS400 3.0mm*1,250mm*C from local mills is THB19,000/t (USD533/t) 7% Vat excluded, equivalent to last week.
The source deems the HRC price is likely to go down in the short term in view of downward purchasing costs. According to him, HRC export prices from mills in China, one of the major origins for Thai HRC, declined by at least USD20/t over last week to USD410/t FOB China this week. With the current sales volume of 30tpd half of the projected level, the source shows no confidence in the market outlook. Currently he just holds a stock of 2,000t for HRC, while it was around 5,000t in past years. His sales volume was 1,000t last month.
