Thai steel plate price up on tight supply
2016-02-05 09:34:09 [Print]
BEIJING (Asian Metal) 5 Feb 16 - As major local steel plate producers take overhaul and the government restricts imports, the supply of steel plate in Thailand is a little bit tight at the moment, stimulating traders to lift quotations. However, end users are inactive in purchasing facing the sudden price rise, so the market remains quiet. Currently the mainstream price of S275 JR 12-20mm from local mills is THB14,500-15,000/t (USD407-421/t) 7% vat excluded, rising by THB500/t (USD14/t) over last week. Insiders foresee a stable price in the coming week.
A trader in Muang told Asian Metal that his price for S275 JR 12-20mm from local mills is THB14,500/t (USD407/t) 7% vat excluded, up by THB500/t (USD14/t) over last week.
Attributing the price rise to the reducing delivery, the source explains that most local steel plate producers could not afford to operate fully due to capital shortage when it entered January, and thus the supply is tight. Besides, local government announced to start hot-rolled plate anti-dumping duty and countervailing duty investigations on steel plate imported from Brazil, Iran and Turkey on January 21st, which means materials from oversea markets will be reduced. Nevertheless, with the current sales volume of 100tpd, against 200tpd in October-November of last year when the market was prosperous, the source stated that it takes time for downstream customers to accept the price increase and currently they just purchase according to urgent needs. Currently he just holds a low stock of 2,000t in hand, while it was 3,000-4,000t last year.
Another trader in Ayutthaya revealed his price for the above grade from local mills is THB15,000/t (USD421/t) 7% vat excluded, increasing by THB500/t (USD14/t) compared with last week.
With the current sales volume of 20-30tpd, the source stated that it could reach 80t per day in the corresponding period of past years. He explained that lots of local end users are Chinese-ethnic and they retreated from the market in past one or two weeks for the coming Lunar New Year (February 8), leading to a tranquil market. Therefore, though traders lifted quotations tentatively, the market performance has not shown any signs of recovering by now. Holding a low stock of 500-600t in hand against 1,500t of last year, the source is not so confident of the market in remainder of February and prefers to keep a keen eye on it.
A trader in Muang told Asian Metal that his price for S275 JR 12-20mm from local mills is THB14,500/t (USD407/t) 7% vat excluded, up by THB500/t (USD14/t) over last week.
Attributing the price rise to the reducing delivery, the source explains that most local steel plate producers could not afford to operate fully due to capital shortage when it entered January, and thus the supply is tight. Besides, local government announced to start hot-rolled plate anti-dumping duty and countervailing duty investigations on steel plate imported from Brazil, Iran and Turkey on January 21st, which means materials from oversea markets will be reduced. Nevertheless, with the current sales volume of 100tpd, against 200tpd in October-November of last year when the market was prosperous, the source stated that it takes time for downstream customers to accept the price increase and currently they just purchase according to urgent needs. Currently he just holds a low stock of 2,000t in hand, while it was 3,000-4,000t last year.
Another trader in Ayutthaya revealed his price for the above grade from local mills is THB15,000/t (USD421/t) 7% vat excluded, increasing by THB500/t (USD14/t) compared with last week.
With the current sales volume of 20-30tpd, the source stated that it could reach 80t per day in the corresponding period of past years. He explained that lots of local end users are Chinese-ethnic and they retreated from the market in past one or two weeks for the coming Lunar New Year (February 8), leading to a tranquil market. Therefore, though traders lifted quotations tentatively, the market performance has not shown any signs of recovering by now. Holding a low stock of 500-600t in hand against 1,500t of last year, the source is not so confident of the market in remainder of February and prefers to keep a keen eye on it.
