Chinese HRC price hard to increase

BEIJING (Asian Metal) 26 Nov 13 - Within the day, Chinese domestic HRC price just keeps stable in prevailing cities supported by the low market inventory. Though the rebar price of main contract in futures market showed signs of increasing, traders still hesitate about hiking offers because of dim demand.Asian Metal Copyright5mm*1,500mm*C from Bengang Steel, the same as that of last trading day.Asian Metal Copyright Most traders are watching the market cautiously, while some are pessimistic about the market, not deeming that the price will increase to the original level at the beginning of the year.

A local HRC distributor in Tianjin discloses to Asian Metal that his quotation for Q235 5.5mm*1,500mm*C from Zhongtie Steel is RMB3,400/t (VAT included), the same as that of the previous trading day.

According to Asian Metal’s news, HRC price in Handan, Hebei Province, another prevailing steel market in North China, decreases by RMB10/t within the day. However, the rebar price in futures market with main contract rebounded by RMB15/t, which strengthens traders’ confidence in following market.Asian Metal Copyright However, the rebar price in futures market with main contract rebounded by RMB15t, which strengthens traders’ confidence in following market.Asian Metal Copyright Therefore, the price is likely to be firm in coming two days.

Another HRC distributor in Shanghai offers RMB3,510/t (VAT included) for Q235 5.5mm*1,500mm*C from Bengang Steel, the same as that of last trading day.

According to the source, since September, he has been suffered the loss of about RMB50/t as the sales price of materials are lower than the purchasing cost, which made the time harder for small and middle traders. “This year, many small traders go bankruptcy without more credit from banks,” says the source.Asian Metal Copyright5mm*1,500mm*C from Zhongtie Steel is RMB3,400t VAT included, the same as that of the previous trading day.Asian Metal Copyright With a current stable trading volume, the source thinks the most important thing is to keep a healthy capital flow.

An HRC trader in Guangzhou, Guangdong Province informs that the quotation for Q235 5.5mm*1,500mm*C from Liuzhou Steel is RMB3,620/t (VAT included), the same as that of the previous trading day.

According to data from China Iron and Steel Association, the daily output of crude steel in middle November was estimated to be 1.763 million tons in prevailing steel mills, with an increase of 3.Asian Metal Copyright5% over that in early November.Asian Metal Copyright5% over that in early November.Asian Metal Copyright With a current stable trading volume, the source thinks the most important thing is to keep a healthy capital flow.Asian Metal Copyright The high production is still preventing the market from warming up continuously.Asian Metal Copyright A local HRC distributor in Tianjin discloses to Asian Metal that his quotation for Q235 5.Asian Metal Copyright In consequence, the source foresees a steady market in the short run.