Chinese HR strip prices increase
2016-01-19 09:16:07 [Print]
BEIJING (Asian Metal) 19 Jan 16 – Chinese HR strip prices went up by about RMB50/t (USD8/t) on the last trading day due to higher raw material costs and increased steel mills’ list prices. Steel billet prices saw a total increase of RMB50/t (USD8/t) in the past week and HR strip producers raised their prices accordingly. However, with the arrival of Chinese New Year, more and more customers are leaving the market for holiday and the market sales performance continues to be poor at the moment. Insiders believe the price is likely to go down again in the next few days.
A distributor of HR strip in Tangshan, Hebei province told Asian Metal that the price witnesses an upward trend for the time being. His price for Q195 315mm*2.5mm*C from Ruifeng Steel is RMB1,870/t (USD294/t) VAT included, rising by RMB60/t (USD9/t) compared with that of the previous trading day.
The source attributes the price increase to the higher purchase cost. According to him, because of the price increase of steel billet, the raw material, Ruifeng Steel moved up the list price of Q195 (232-355)mm*2.5mm*C by RMB60/t (USD9/t) to RMB1,860/t (USD292/t) VAT included early this week. “The price of steel billet Q235 150mm*150mm in Tangshan, Hebei province rose by RMB50/t (USD8/t) last week to about RMB1,650/t (USD259/t) VAT included,” he said. However, with the arrival of the Spring Festival, more and more customers are leaving the market for holiday now and his sales performance remains bad. With a current sales volume of less than 50tpd against that of about 2,000t for last month, the source has no stock in hand and all materials need to be delivered from steel mills directly. He does not suppose the price will climb further in the following days.
Another Tianjin-based HR strip trader confirmed the price increase. His price for Q195 295mm*2.5mm*C from Youfa Steel is RMB1,930/t (USD303/t) VAT included, up by RMB50/t (USD8/t) compared with that of the previous trading day.
According to the source, Youfa Steel also increased the price of HR strip Q195 (232-355)mm*2.5mm*C by RMB20/t (USD3/t) early this week to RMB1,910/t (USD300/t) VAT included as a result of higher steel billet prices. Nevertheless, with no urgent need for materials, customers prefer to hold a wait-and-see attitude and place orders inactively. “The price fluctuated frequently in recent two weeks, and traders do not intend to build large stockpiles to avoid risks,” he said, adding that he can deliver the material from steel mills if customers place orders with him. With no deals concluded now against the sales volume of about 1,000t in December, the source believes the price is likely to drop again in the next few days.
A distributor of HR strip in Tangshan, Hebei province told Asian Metal that the price witnesses an upward trend for the time being. His price for Q195 315mm*2.5mm*C from Ruifeng Steel is RMB1,870/t (USD294/t) VAT included, rising by RMB60/t (USD9/t) compared with that of the previous trading day.
The source attributes the price increase to the higher purchase cost. According to him, because of the price increase of steel billet, the raw material, Ruifeng Steel moved up the list price of Q195 (232-355)mm*2.5mm*C by RMB60/t (USD9/t) to RMB1,860/t (USD292/t) VAT included early this week. “The price of steel billet Q235 150mm*150mm in Tangshan, Hebei province rose by RMB50/t (USD8/t) last week to about RMB1,650/t (USD259/t) VAT included,” he said. However, with the arrival of the Spring Festival, more and more customers are leaving the market for holiday now and his sales performance remains bad. With a current sales volume of less than 50tpd against that of about 2,000t for last month, the source has no stock in hand and all materials need to be delivered from steel mills directly. He does not suppose the price will climb further in the following days.
Another Tianjin-based HR strip trader confirmed the price increase. His price for Q195 295mm*2.5mm*C from Youfa Steel is RMB1,930/t (USD303/t) VAT included, up by RMB50/t (USD8/t) compared with that of the previous trading day.
According to the source, Youfa Steel also increased the price of HR strip Q195 (232-355)mm*2.5mm*C by RMB20/t (USD3/t) early this week to RMB1,910/t (USD300/t) VAT included as a result of higher steel billet prices. Nevertheless, with no urgent need for materials, customers prefer to hold a wait-and-see attitude and place orders inactively. “The price fluctuated frequently in recent two weeks, and traders do not intend to build large stockpiles to avoid risks,” he said, adding that he can deliver the material from steel mills if customers place orders with him. With no deals concluded now against the sales volume of about 1,000t in December, the source believes the price is likely to drop again in the next few days.
