Chinese HRC market dim
2015-09-22 09:15:37 [Print]
BEIJING (Asian Metal) 22 Sep 15 - The HRC market performs inactively in China for the moment, and prices decline in some regions. Most traders show no confidence in the market outlook. Insiders suppose that the HRC price is likely to go down nationwide in following two or three days.
A trader in Foshan, Guangdong Province quotes RMB2,030/t (USD318/t) VAT included for HRC Q235B 5.5mm*1,500mm*C from Yanshan Steel, down by RMB30/t (USD4.8/t) over last trading day.
Holding a low stock of 4,000t against 8,000t in past years, the source attributes the price decline to decreasing cost support as well as the poor sales performance. Noted by him, the price of steel billet declined by RMB40/t (USD6.4/t) totally last week, heightening market participants’ pessimism about the market outlook. In the meantime, downstream customers prefer to watch the market rather than place orders actively.
A trader in Shenyang, Liaoning Province offers RMB2,080/t (USD326/t) VAT included for HRC Q235B 5.5mm*1,500mm*C from Ansteel, the same as last trading day.
As an agent of Ansteel, the source complains the business is hard to run this year and he reduced the monthly agreement quantity to 6,000-7,000t this year from 15,000t in past years. Besides, although there are less than 10 working days left in the “Golden September”, the demand from downstream customers shows no signs of getting stronger and he pins no hope on the market in the “Silver October”. Currently his sales volume is 300-400t per day, while it was around 900t in the corresponding periods of past years.
A trader in Shanghai quotes RMB1,940/t (USD304/t) VAT included for HRC Q235B 5.5mm*1,500mm*C from Rizhao Steel, the same as last trading day.
With a sales volume of 200-300tpd, half of that in last September, the source states that the price is negotiable if there are firm orders and he can provide a discount of RMB10-20/t (USD1.6-3.2/t). Not being confident of the market outlook, he refuses to build a large stock, and just supplements the inventory according to grade shortage.
A trader in Foshan, Guangdong Province quotes RMB2,030/t (USD318/t) VAT included for HRC Q235B 5.5mm*1,500mm*C from Yanshan Steel, down by RMB30/t (USD4.8/t) over last trading day.
Holding a low stock of 4,000t against 8,000t in past years, the source attributes the price decline to decreasing cost support as well as the poor sales performance. Noted by him, the price of steel billet declined by RMB40/t (USD6.4/t) totally last week, heightening market participants’ pessimism about the market outlook. In the meantime, downstream customers prefer to watch the market rather than place orders actively.
A trader in Shenyang, Liaoning Province offers RMB2,080/t (USD326/t) VAT included for HRC Q235B 5.5mm*1,500mm*C from Ansteel, the same as last trading day.
As an agent of Ansteel, the source complains the business is hard to run this year and he reduced the monthly agreement quantity to 6,000-7,000t this year from 15,000t in past years. Besides, although there are less than 10 working days left in the “Golden September”, the demand from downstream customers shows no signs of getting stronger and he pins no hope on the market in the “Silver October”. Currently his sales volume is 300-400t per day, while it was around 900t in the corresponding periods of past years.
A trader in Shanghai quotes RMB1,940/t (USD304/t) VAT included for HRC Q235B 5.5mm*1,500mm*C from Rizhao Steel, the same as last trading day.
With a sales volume of 200-300tpd, half of that in last September, the source states that the price is negotiable if there are firm orders and he can provide a discount of RMB10-20/t (USD1.6-3.2/t). Not being confident of the market outlook, he refuses to build a large stock, and just supplements the inventory according to grade shortage.
