HRC price upward in Thailand
2016-08-26 08:42:29 [Print]
BEIJING (Asian Metal) 26 Aug 16 - After a total markup of THB800/t (USD23/t) in past two weeks, the HRC price in Thailand increased again by THB500/t (USD14/t) this week boosted by rising purchasing costs. Currently the mainstream price of SS400 3.0mm*1,250mm*C from local mills is around THB16,500/t (USD477/t) 7% Vat excluded. Insiders foresee a firm price in following several days.
A trader in Muang claimed that his price for SS400 3.0mm*1,250mm*C from local mills is THB16,500/t (USD477/t) 7% Vat excluded, up by THB500/t (USD14/t) over last Friday.
According to the source, it is the rising purchasing cost that boosted the current price increase, and the market performance is getting better. Noted by him, worldwide prices rises of raw materials increase local mills’ production cost, and they have to move ex-factory prices up. “I heard that the export price of steel billet in China has soared to USDD355/t FOB China this week, and mills in Thailand and other Southeast Asian regions prefer to purchase from the CIS for the lower prices to reduce production cost, while they refused to do so before because of the long shipment date,” added the source. Besides, the strong upward price trend in China also stimulated traders here to raise prices to some extent. Believing the price for HRC is likely to go up further in following several weeks, the source has enlarged his inventory by 1,200t to 3,200t in recent two weeks. With the current sales volume of 120tpd against 100tpd at the beginning of August, he sold 1,800t totally in July.
Another trader in Ayutthaya told Asian Metal that his price for SS400 3.0mm*1,250mm*C from local mills is THB16,500/t (USD477/t) 7% Vat excluded, rose by THB500/t (USD14/t) compared with last Friday.
The source reported an unsatisfactory market performance after the price rise, and he does not think the market can warm up before the end of the rainy season late September. “The HRC export price from China has soared to USD405/t FOB China this week from that of USD360/t one month ago due to the country’s steel production capacity cut policy, strengthening worldwide market participants’ confidence to some extent, so traders in Thailand lift prices actively, despite a dull market,” explained the source, with the sales volume of 30tpd, against 600t last month. Currently he holds a stock of 1,000t at hand, while it could reach 1,500t in March-April when the market performance was relatively satisfactory. He does not think the HRC price will change much in the short term.
A trader in Muang claimed that his price for SS400 3.0mm*1,250mm*C from local mills is THB16,500/t (USD477/t) 7% Vat excluded, up by THB500/t (USD14/t) over last Friday.
According to the source, it is the rising purchasing cost that boosted the current price increase, and the market performance is getting better. Noted by him, worldwide prices rises of raw materials increase local mills’ production cost, and they have to move ex-factory prices up. “I heard that the export price of steel billet in China has soared to USDD355/t FOB China this week, and mills in Thailand and other Southeast Asian regions prefer to purchase from the CIS for the lower prices to reduce production cost, while they refused to do so before because of the long shipment date,” added the source. Besides, the strong upward price trend in China also stimulated traders here to raise prices to some extent. Believing the price for HRC is likely to go up further in following several weeks, the source has enlarged his inventory by 1,200t to 3,200t in recent two weeks. With the current sales volume of 120tpd against 100tpd at the beginning of August, he sold 1,800t totally in July.
Another trader in Ayutthaya told Asian Metal that his price for SS400 3.0mm*1,250mm*C from local mills is THB16,500/t (USD477/t) 7% Vat excluded, rose by THB500/t (USD14/t) compared with last Friday.
The source reported an unsatisfactory market performance after the price rise, and he does not think the market can warm up before the end of the rainy season late September. “The HRC export price from China has soared to USD405/t FOB China this week from that of USD360/t one month ago due to the country’s steel production capacity cut policy, strengthening worldwide market participants’ confidence to some extent, so traders in Thailand lift prices actively, despite a dull market,” explained the source, with the sales volume of 30tpd, against 600t last month. Currently he holds a stock of 1,000t at hand, while it could reach 1,500t in March-April when the market performance was relatively satisfactory. He does not think the HRC price will change much in the short term.
