Chinese HR strip prices go up
2016-03-02 08:43:38 [Print]
BEIJING (Asian Metal) 2 Mar 16 – Chinese HR strip prices witness an upward trend for the time being mainly supported by higher raw material costs and increased steel mills’ list prices. As steel billet prices increased by about RMB30/t (USD5/t) this week, HR strip producers raised their prices accordingly. Current mainstream prices of Q195 (232-355)mm*2.5mm*C in Tianjin and Tangshan are about RMB1,950/t (USD306/t) and RMB1,890/t (USD297/t) VAT included respectively. However, considering demand from customers remains weak, insiders do not expect the price to increase further in the following days.
A distributor of HR strip in Tangshan, Hebei province told Asian Metal that the price is rising at present. His price for Q195 315mm*2.5mm*C from Ruifeng Steel is RMB1,890/t (USD297/t) VAT included, up by RMB30/t (USD5/t) compared with that of the previous trading day.
The source attributes the price increase to the higher purchase cost. According to him, supported by the price increase of steel billet, the raw material, Ruifeng Steel raised the list price of Q195 (232-355)mm*2.5mm*C by RMB30/t (USD5/t) on Tuesday to RMB1,880/t (USD295/t) VAT included. “The price of steel billet Q235 150mm*150mm in Tangshan, Hebei province saw an increase of 30/t (USD5/t) this week to about RMB1,720/t (USD270/t) VAT included,” he said. However, since current prices in Tangshan are not competitive compared with those of RMB1,910/t (USD300/t) in Langfang, Hebei province, customers in surrounding markets place orders inactively. With a sales volume of around 1,000t in February, the source said his current concluded amount is no more than 50tpd. In order to avoid risks, he holds zero stock in hand now and all materials need to be delivered from steel mills directly. The source does not suppose the price will keep moving up in the next few days.
Another Tianjin-based HR strip trader with a sales volume of around 40,000t in 2015 confirmed the price increase. His price for Q195 335mm*2.5mm*C from Tianfeng Steel is RMB1,950/t (USD306/t) VAT included, rising by RMB30/t (USD5/t) compared with that of the previous trading day.
According to the source, Tianfeng Steel also moved the price of HR strip Q195 (232-355)mm*2.5mm*C up by RMB40/t (USD8/t) on 1 March to RMB1,950/t (USD306/t) VAT included on increased steel billet prices. Nevertheless, customers without urgent need for materials are still taking a cautious attitude towards the market outlook now and refusing to place orders. “The price fluctuated frequently and the market sales performance did not improve these days,” he said, adding that his current sales volume is less than 30tpd against about 1,000t in February. Holding a low inventory of less than 500t to avoid risks, the source does not predict the market will improve in the following days.
A distributor of HR strip in Tangshan, Hebei province told Asian Metal that the price is rising at present. His price for Q195 315mm*2.5mm*C from Ruifeng Steel is RMB1,890/t (USD297/t) VAT included, up by RMB30/t (USD5/t) compared with that of the previous trading day.
The source attributes the price increase to the higher purchase cost. According to him, supported by the price increase of steel billet, the raw material, Ruifeng Steel raised the list price of Q195 (232-355)mm*2.5mm*C by RMB30/t (USD5/t) on Tuesday to RMB1,880/t (USD295/t) VAT included. “The price of steel billet Q235 150mm*150mm in Tangshan, Hebei province saw an increase of 30/t (USD5/t) this week to about RMB1,720/t (USD270/t) VAT included,” he said. However, since current prices in Tangshan are not competitive compared with those of RMB1,910/t (USD300/t) in Langfang, Hebei province, customers in surrounding markets place orders inactively. With a sales volume of around 1,000t in February, the source said his current concluded amount is no more than 50tpd. In order to avoid risks, he holds zero stock in hand now and all materials need to be delivered from steel mills directly. The source does not suppose the price will keep moving up in the next few days.
Another Tianjin-based HR strip trader with a sales volume of around 40,000t in 2015 confirmed the price increase. His price for Q195 335mm*2.5mm*C from Tianfeng Steel is RMB1,950/t (USD306/t) VAT included, rising by RMB30/t (USD5/t) compared with that of the previous trading day.
According to the source, Tianfeng Steel also moved the price of HR strip Q195 (232-355)mm*2.5mm*C up by RMB40/t (USD8/t) on 1 March to RMB1,950/t (USD306/t) VAT included on increased steel billet prices. Nevertheless, customers without urgent need for materials are still taking a cautious attitude towards the market outlook now and refusing to place orders. “The price fluctuated frequently and the market sales performance did not improve these days,” he said, adding that his current sales volume is less than 30tpd against about 1,000t in February. Holding a low inventory of less than 500t to avoid risks, the source does not predict the market will improve in the following days.
