Chinese HRC prices rebound
2015-07-13 08:55:07 [Print]
BEIJING (Asian Metal) 13 Jul 15 - After sharp and continuous price declines in past four days, HRC prices rebounded in China on Friday, while most traders are not so confident of the market outlook. Insiders do not think the price will keep rising in coming several days in view of the soft demand.
A trader in Shenyang, Liaoning Province offers RMB2,020/t (USD325/t) VAT included for HRC Q235B 5.5mm*1,500mm*C from Ansteel, up by RMB50/t (USD8/t) over last trading day.
According to the source, prices for raw materials and finished steel in the futures market rebounded significantly on Thursday afternoon, stimulating HRC traders in the spot market to raise quotations. However, the market performance does not show any signs of making progress and his sales volume remains at the low level of 300-400t per day, while the daily level is 900t in the peak season. Not being confident of the market outlook, the source has reduced his stock from 15,000t to the current low level of 6,000-7,000t in recent two months.
A trader in Foshan, Guangdong Province offers RMB2,100/t (USD338/t) VAT included for HRC Q235B 5.5mm*1,500mm*C from Liuzhou Steel, rising by RMB100/t (USD16/t) over last trading day.
The source explains that he just lifted quotations tentatively to test the market, and the sales performance remains unsatisfying due to the rainy weather and Typhoon. “It’s hard for materials with higher prices to conclude deals now, so I do not think the price will go up again in the near future,” he adds, with a low stock of 1,000t in hand.
A trader in Shanghai tells Asian Metal that his quotation for HRC Q235B 2.75mm*1,250mm*C from Ansteel is RMB2,220/t (USD357/t) VAT included, increasing by RMB50/t (USD8/t) over last trading day.
With the current sales volume of 400-500tpd against 1,000tpd in the peak season, the source points out that although downstream customers purchase actively, for fear of a further price up, he does not think the price will keep rebounding in coming several days. “Traders are eager to lift quotations since they suffered a lot at the beginning of last week when the price dropped, so they raised prices tentatively once those in the futures market showed signs of increasing, but the solid demand is not strong enough,” he explains, with a wait-and-see attitude towards the market prospect.
A trader in Shenyang, Liaoning Province offers RMB2,020/t (USD325/t) VAT included for HRC Q235B 5.5mm*1,500mm*C from Ansteel, up by RMB50/t (USD8/t) over last trading day.
According to the source, prices for raw materials and finished steel in the futures market rebounded significantly on Thursday afternoon, stimulating HRC traders in the spot market to raise quotations. However, the market performance does not show any signs of making progress and his sales volume remains at the low level of 300-400t per day, while the daily level is 900t in the peak season. Not being confident of the market outlook, the source has reduced his stock from 15,000t to the current low level of 6,000-7,000t in recent two months.
A trader in Foshan, Guangdong Province offers RMB2,100/t (USD338/t) VAT included for HRC Q235B 5.5mm*1,500mm*C from Liuzhou Steel, rising by RMB100/t (USD16/t) over last trading day.
The source explains that he just lifted quotations tentatively to test the market, and the sales performance remains unsatisfying due to the rainy weather and Typhoon. “It’s hard for materials with higher prices to conclude deals now, so I do not think the price will go up again in the near future,” he adds, with a low stock of 1,000t in hand.
A trader in Shanghai tells Asian Metal that his quotation for HRC Q235B 2.75mm*1,250mm*C from Ansteel is RMB2,220/t (USD357/t) VAT included, increasing by RMB50/t (USD8/t) over last trading day.
With the current sales volume of 400-500tpd against 1,000tpd in the peak season, the source points out that although downstream customers purchase actively, for fear of a further price up, he does not think the price will keep rebounding in coming several days. “Traders are eager to lift quotations since they suffered a lot at the beginning of last week when the price dropped, so they raised prices tentatively once those in the futures market showed signs of increasing, but the solid demand is not strong enough,” he explains, with a wait-and-see attitude towards the market prospect.
