Chinese HR strip prices drop
2015-06-03 09:25:37 [Print]
BEIJING (Asian Metal) 3 Jun 15 – Chinese HR strip prices witness a downward trend for the time being due to steel mills’ lower list prices and weak customer demand. Major steel producers cut their prices early this week on lower raw material costs. Insiders do not expect the market to improve in the short term.
A Tangshan-based distributor of HR strip told Asian Metal that the price sees a declining trend at the moment. His quotation for Q195 295mm*2.5mm*C from Ruifeng Steel is RMB2,200/t (USD355/t) VAT included, down by RMB40/t (USD6/t) compared with that of last trading day.
The source attributes the price decrease to the downward purchase cost. According to him, Ruifeng Steel reduced the list price of Q195 (232-355)mm*2.5mm*C by RMB40/t (USD6/t) to RMB2,180/t (USD352/t) VAT included early this week. Holding no stocks, the source delivers the material from Ruifeng Steel directly once customers place orders with him. Nevertheless, as most customers are still taking a cautious attitude towards the forthcoming market, he has no deals concluded now, while the sales volume can reach 300tpd in the high season. The source does not believe the market will recover in the next few days.
Another Tianjin-based HR strip trader confirmed the price decrease. His quotation for Q195 315mm*2.5mm*C from Qifeng Steel is RMB2,200/t (USD355/t) VAT included, dropping by RMB60/t (USD10/t) compared with that of last trading day.
According to the source, following other producers such as Qianjin Steel and Ruifeng Steel in Hebei province, Qifeng Steel also moved down the list price for Q195 (232-355)mm*2.5mm*C by RMB40/t (USD6/t) to RMB2,240/t VAT included on Tuesday. Besides, seeing HR strip prices in local market further went down by about RMB150/t (USD24/t) in the past month, customers are holding a wait-and-see attitude to expect the price to further decrease. With few deals concluded now, the source is not optimistic about the forthcoming market in June.
A Tangshan-based distributor of HR strip told Asian Metal that the price sees a declining trend at the moment. His quotation for Q195 295mm*2.5mm*C from Ruifeng Steel is RMB2,200/t (USD355/t) VAT included, down by RMB40/t (USD6/t) compared with that of last trading day.
The source attributes the price decrease to the downward purchase cost. According to him, Ruifeng Steel reduced the list price of Q195 (232-355)mm*2.5mm*C by RMB40/t (USD6/t) to RMB2,180/t (USD352/t) VAT included early this week. Holding no stocks, the source delivers the material from Ruifeng Steel directly once customers place orders with him. Nevertheless, as most customers are still taking a cautious attitude towards the forthcoming market, he has no deals concluded now, while the sales volume can reach 300tpd in the high season. The source does not believe the market will recover in the next few days.
Another Tianjin-based HR strip trader confirmed the price decrease. His quotation for Q195 315mm*2.5mm*C from Qifeng Steel is RMB2,200/t (USD355/t) VAT included, dropping by RMB60/t (USD10/t) compared with that of last trading day.
According to the source, following other producers such as Qianjin Steel and Ruifeng Steel in Hebei province, Qifeng Steel also moved down the list price for Q195 (232-355)mm*2.5mm*C by RMB40/t (USD6/t) to RMB2,240/t VAT included on Tuesday. Besides, seeing HR strip prices in local market further went down by about RMB150/t (USD24/t) in the past month, customers are holding a wait-and-see attitude to expect the price to further decrease. With few deals concluded now, the source is not optimistic about the forthcoming market in June.
