Chinese HR strip market quiet
2015-05-05 08:46:52 [Print]
BEIJING (Asian Metal) 5 May 15 – Chinese HR strip market continues to be quiet at the moment affected by the price decrease in North China. Being cautious about the forthcoming market, customers are still taking a wait-and-see attitude. Insiders do not expect HR strip market to improve in the short term.
A Tangshan-based steel distributor of HR strip told Asian Metal that the price sees a downward trend at present. His quotation for Q195 295mm*2.5mm*C from Ruifeng Steel is RMB2,310/t (USD372/t) VAT included, declining by RMB20/t (USD3/t) compared with that of last trading day.
The source attributes the price decrease to the lower list price of Ruifeng Steel. According to him, Ruifeng Steel moved down the price for Q195 (232-355)mm*2.5mm*C by RMB20/t (USD3/t) on May 4 to RMB2,300/t (USD370/t) VAT included. He has no stock now and delivers the material directly from the mill according to customers’ orders. Nevertheless, seeing the price decrease, customers are cautious about the forthcoming market and refuse to place orders. With no deals concluded now against the target sales volume of about 200tpd, the source does not predict the market will recover in the following days.
Another Guangzhou-based HR strip trader confirmed the dim market. His price for Q195 315mm*2.5mm*C from Guofeng Steel is RMB2,480/t (USD399/t) VAT included, stable compared with that of last trading day.
The source’s target sales volume is around 500tpd, but there are few enquiries now. “Customers prefer to hold a wait-and-see attitude after the May Day holiday especially when they see the price decrease of RMB20-30/t (USD3-5/t) in North China,” he explained, adding that market participants in Guangzhou normally regard the price trend in Tangshan as the benchmark. Therefore, if the price in North China continues to go down, he will have to lower his quotations in the following days.
(Exchange rate between RMB and USD=6.2081:1)
A Tangshan-based steel distributor of HR strip told Asian Metal that the price sees a downward trend at present. His quotation for Q195 295mm*2.5mm*C from Ruifeng Steel is RMB2,310/t (USD372/t) VAT included, declining by RMB20/t (USD3/t) compared with that of last trading day.
The source attributes the price decrease to the lower list price of Ruifeng Steel. According to him, Ruifeng Steel moved down the price for Q195 (232-355)mm*2.5mm*C by RMB20/t (USD3/t) on May 4 to RMB2,300/t (USD370/t) VAT included. He has no stock now and delivers the material directly from the mill according to customers’ orders. Nevertheless, seeing the price decrease, customers are cautious about the forthcoming market and refuse to place orders. With no deals concluded now against the target sales volume of about 200tpd, the source does not predict the market will recover in the following days.
Another Guangzhou-based HR strip trader confirmed the dim market. His price for Q195 315mm*2.5mm*C from Guofeng Steel is RMB2,480/t (USD399/t) VAT included, stable compared with that of last trading day.
The source’s target sales volume is around 500tpd, but there are few enquiries now. “Customers prefer to hold a wait-and-see attitude after the May Day holiday especially when they see the price decrease of RMB20-30/t (USD3-5/t) in North China,” he explained, adding that market participants in Guangzhou normally regard the price trend in Tangshan as the benchmark. Therefore, if the price in North China continues to go down, he will have to lower his quotations in the following days.
(Exchange rate between RMB and USD=6.2081:1)
