HRC prices up in Thailand on tight supply
2016-03-18 08:43:21 [Print]
BEIJING (Asian Metal) 18 Mar 16 - The HRC price increased by around THB500/t (USD14.3/t) this week because of overall low stockpile, and the market performance remains not so that satisfactory. Currently the mainstream price of SS400 3.0mm*1,250mm*C from local mills is THB18,000/t (USD516/t) 7% Vat excluded. Insiders predict that the price is likely to keep stable next week.
A trader in Ayutthaya told Asian Metal that his price for SS400 3.0mm*1,250mm*C from local mills is THB18,000/t (USD516/t) 7% Vat excluded, increasing by THB500/t (USD14.3/t) compared with last week.
Holding a low stock of 500t at hand, the same as that in February, the source stated that he usually held a stock of 1,000t last year. Noted by him, most local HRC producers still face capital problems and fail to produce fully at the moment as they did at the beginning of January, and that’s why the market price keeps rising with the absence of rigid demand. In the meantime, he pointed out that end users begin to purchase to build some stocks in view of the upward price trend, for fear of another price rise. His sales volume is 30tpd right now, 10t higher than the average daily sales volume of last week. He sold 500t in February. Considering the demand from downstream industries will shrink day by day with the approach of the Songkan Festival (April 13), he thinks the HRC price is powerless to go up again next week.
Another trader in Bangkok claimed his price for SS400 3.0mm*1,250mm*C from local mills is THB18,000/t (USD516/t) 7% Vat excluded, rising by THB500/t (USD14.3/t) over last week .
According to the source, besides short supply, prices soar in peripheral markets including China, Japan and South Korea are the other main reason for the current price increase in Thailand. Noted by him, currently export price for the above grade from first-tier mills in China is as high as USD360-365/t CFR Bangkok, rising by USD40-50/t over two weeks ago. Holding a low stock of 300t at hand against 400-500t in February, he said that most local traders like him are not burdened with sales pressure, and they are eager to raise prices. With the current sales volume of 10tpd the same as last week, he complained the market remains dim after the price increase. The source sold 300t last month.
A trader in Ayutthaya told Asian Metal that his price for SS400 3.0mm*1,250mm*C from local mills is THB18,000/t (USD516/t) 7% Vat excluded, increasing by THB500/t (USD14.3/t) compared with last week.
Holding a low stock of 500t at hand, the same as that in February, the source stated that he usually held a stock of 1,000t last year. Noted by him, most local HRC producers still face capital problems and fail to produce fully at the moment as they did at the beginning of January, and that’s why the market price keeps rising with the absence of rigid demand. In the meantime, he pointed out that end users begin to purchase to build some stocks in view of the upward price trend, for fear of another price rise. His sales volume is 30tpd right now, 10t higher than the average daily sales volume of last week. He sold 500t in February. Considering the demand from downstream industries will shrink day by day with the approach of the Songkan Festival (April 13), he thinks the HRC price is powerless to go up again next week.
Another trader in Bangkok claimed his price for SS400 3.0mm*1,250mm*C from local mills is THB18,000/t (USD516/t) 7% Vat excluded, rising by THB500/t (USD14.3/t) over last week .
According to the source, besides short supply, prices soar in peripheral markets including China, Japan and South Korea are the other main reason for the current price increase in Thailand. Noted by him, currently export price for the above grade from first-tier mills in China is as high as USD360-365/t CFR Bangkok, rising by USD40-50/t over two weeks ago. Holding a low stock of 300t at hand against 400-500t in February, he said that most local traders like him are not burdened with sales pressure, and they are eager to raise prices. With the current sales volume of 10tpd the same as last week, he complained the market remains dim after the price increase. The source sold 300t last month.
