Chinese HRC prices continue to decrease in some regions
2015-08-25 09:01:57 [Print]
BEIJING (Asian Metal) 25 Aug 15 - After a markdown of around RMB30/t (USD4.8/t) last week, HRC prices continued to go down in some Chinese domestic markets influenced by traders’ pessimism about the market outlook as well as price declines in the futures and stock markets. Insiders deem that HRC prices are likely to decrease nationwide in coming two or three days.
A trader in Shanghai quotes RMB1,940/t (USD303/t) VAT included for HRC Q235B 5.5mm*1,500mm*C from WISCO, down by RMB30/t (USD4.8/t) over last Friday.
Attributing the price decline to the poor market performance, the source discloses that his average daily sales volume has been 200t in recent one week, while it is 400t when the market is prosperous. According to him, as it is the traditional off-season, the demand from downstream industries remains slim and it is hard to conclude large deals. Noted by him, the price decreased by around RMB100/t (USD16/t) from last Monday to this Monday in Shanghai. Besides, sharp price declines in the futures and stock markets heightened market participants’ cautious attitudes and led to a price decrease of HRC.
A trader in Shenyang, Liaoning Province quotes RMB2,110/t (USD330/t) VAT included for HRC Q235B 5.5mm*1,500mm*C from Ansteel, the same as last Friday.
According to the source, the price has showed signs of decreasing since the beginning of last week and it was RMB2,140/t (USD334/t) last Monday. Though he quotes RMB2,110/t (USD330/t) at the moment, the concluding one is negotiable and a discount of RMB10-20/t (USD1.6-3.2/t) is acceptable. His current sales volume is just 300-400tpd, while the projected level is 900t per day. Not being confident of the market outlook, he has reduced the stock from 15,000t to 6,000-7,000t in recent two months.
A trader in Foshan, Guangdong Province offers RMB2,180/t (USD340/t) VAT included for HRC Q235B 5.5mm*1,500mm*C from Liuzhou Steel, unchanged over last Friday.
Holding a low stock of 1,000t in hand, half of that in the corresponding periods of past years, the source shows no confidence in the market prospect and is worried about a price decline in the short term. According to him, the HRC price kept rising in past two or three weeks in local market because of material shortage. Considering new materials arrive at port in succession, a price falling back is reasonable.
A trader in Shanghai quotes RMB1,940/t (USD303/t) VAT included for HRC Q235B 5.5mm*1,500mm*C from WISCO, down by RMB30/t (USD4.8/t) over last Friday.
Attributing the price decline to the poor market performance, the source discloses that his average daily sales volume has been 200t in recent one week, while it is 400t when the market is prosperous. According to him, as it is the traditional off-season, the demand from downstream industries remains slim and it is hard to conclude large deals. Noted by him, the price decreased by around RMB100/t (USD16/t) from last Monday to this Monday in Shanghai. Besides, sharp price declines in the futures and stock markets heightened market participants’ cautious attitudes and led to a price decrease of HRC.
A trader in Shenyang, Liaoning Province quotes RMB2,110/t (USD330/t) VAT included for HRC Q235B 5.5mm*1,500mm*C from Ansteel, the same as last Friday.
According to the source, the price has showed signs of decreasing since the beginning of last week and it was RMB2,140/t (USD334/t) last Monday. Though he quotes RMB2,110/t (USD330/t) at the moment, the concluding one is negotiable and a discount of RMB10-20/t (USD1.6-3.2/t) is acceptable. His current sales volume is just 300-400tpd, while the projected level is 900t per day. Not being confident of the market outlook, he has reduced the stock from 15,000t to 6,000-7,000t in recent two months.
A trader in Foshan, Guangdong Province offers RMB2,180/t (USD340/t) VAT included for HRC Q235B 5.5mm*1,500mm*C from Liuzhou Steel, unchanged over last Friday.
Holding a low stock of 1,000t in hand, half of that in the corresponding periods of past years, the source shows no confidence in the market prospect and is worried about a price decline in the short term. According to him, the HRC price kept rising in past two or three weeks in local market because of material shortage. Considering new materials arrive at port in succession, a price falling back is reasonable.
