Chinese HR strip prices go down
2015-12-01 09:12:21 [Print]
BEIJING (Asian Metal) 1 Dec 15 – Chinese HR strip prices moved down by about RMB50/t (USD8/t) on the last trading day mainly because of lower raw material costs and weak consumer demand. Major HR strip producers cut their prices. Having no confidence in the market look, traders are reluctant to build large stocks to avoid risks. Insiders believe the market will continue to be quiet in the following days.
A distributor of HR strip in Tangshan, Hebei province told Asian Metal that the price sees a downward trend at present. His price for Q195 315mm*2.5mm*C from Ruifeng Steel is RMB1,660/t (USD261/t) VAT included, falling by RMB50/t (USD8/t) compared with that of the previous trading day.
The source attributes the price decrease to the lower purchase cost. According to him, because of the price decline of steel billet, the raw material, Ruifeng Steel reduced the list price of Q195 (232-355)mm*2.5mm*C by RMB50/t (USD8/t) to RMB1,650/t (USD259/t) VAT included on November 30. “The price of steel billet Q235 150mm*150mm in Tangshan, Hebei province went down by RMB50/t (USD8/t) last weekend to about RMB1,500/t (USD236/t) VAT included,” he said. Nevertheless, with no urgent need for materials, most customers are just taking a cautious attitude towards the market outlook and refusing to place orders now. His current sales volume is less than 100tpd, while it is about 150tpd for last month. Holding no stock in hand, the source has no confidence in the forthcoming market.
Another Tianjin-based HR strip trader confirmed the price decrease. His price for Q195 305mm*2.5mm*C from Qifeng Steel is RMB1,740/t (USD273/t) VAT included, down by RMB50/t (USD8/t) compared with that of the previous trading day.
The source revealed that Qifeng Steel also cut the price of HR strip Q195 (232-355)mm*2.5mm*C by RMB50/t (USD3/t) on Monday to RMB1,730/t (USD272/t) VAT included on lower steel billet prices. Therefore, he decreased his prices accordingly to attract customers. However, with no deals concluded now against the sales volume of about 2,000t for last month, he still faces a bad sales performance under customers’ wait-and-see attitude. “Downstream customers’ demand is unlikely to be released in the short term amid the gloomy economy and traditionally low season,” he said, adding that he still holds a small stock of about 500t to avoid risks. The source does not expect the market to improve in the following days.
A distributor of HR strip in Tangshan, Hebei province told Asian Metal that the price sees a downward trend at present. His price for Q195 315mm*2.5mm*C from Ruifeng Steel is RMB1,660/t (USD261/t) VAT included, falling by RMB50/t (USD8/t) compared with that of the previous trading day.
The source attributes the price decrease to the lower purchase cost. According to him, because of the price decline of steel billet, the raw material, Ruifeng Steel reduced the list price of Q195 (232-355)mm*2.5mm*C by RMB50/t (USD8/t) to RMB1,650/t (USD259/t) VAT included on November 30. “The price of steel billet Q235 150mm*150mm in Tangshan, Hebei province went down by RMB50/t (USD8/t) last weekend to about RMB1,500/t (USD236/t) VAT included,” he said. Nevertheless, with no urgent need for materials, most customers are just taking a cautious attitude towards the market outlook and refusing to place orders now. His current sales volume is less than 100tpd, while it is about 150tpd for last month. Holding no stock in hand, the source has no confidence in the forthcoming market.
Another Tianjin-based HR strip trader confirmed the price decrease. His price for Q195 305mm*2.5mm*C from Qifeng Steel is RMB1,740/t (USD273/t) VAT included, down by RMB50/t (USD8/t) compared with that of the previous trading day.
The source revealed that Qifeng Steel also cut the price of HR strip Q195 (232-355)mm*2.5mm*C by RMB50/t (USD3/t) on Monday to RMB1,730/t (USD272/t) VAT included on lower steel billet prices. Therefore, he decreased his prices accordingly to attract customers. However, with no deals concluded now against the sales volume of about 2,000t for last month, he still faces a bad sales performance under customers’ wait-and-see attitude. “Downstream customers’ demand is unlikely to be released in the short term amid the gloomy economy and traditionally low season,” he said, adding that he still holds a small stock of about 500t to avoid risks. The source does not expect the market to improve in the following days.
