Chinese HR strip prices rise
2016-03-22 08:47:10 [Print]
BEIJING (Asian Metal) 22 Mar 16 – Chinese HR strip prices see an upward trend for the time being mainly supported by higher raw material costs and increased steel mills’ list prices. As steel billet prices went up, HR strip producers raised their prices accordingly. Current mainstream prices of Q195 (232-355)mm*2.5mm*C in Tangshan, Hebei province and Tianjin are about RMB2,260/t (USD355/t) and RMB2,280/t (USD358/t) VAT included respectively. However, considering demand from customers remains weak, insiders do not expect the price to rise further in the next few days.
A distributor of HR strip in Tangshan, Hebei province with a trading volume of about 20,000t in 2015 told Asian Metal that the price witnesses an upward trend at present. His price for Q195 315mm*2.5mm*C from Ruifeng Steel is RMB2,260/t (USD355/t) VAT included, up by RMB90/t (USD14/t) compared with that of the previous trading day.
The source attributes the price increase to higher purchase cost. According to him, because of the price increase of steel billet, the raw material, Ruifeng Steel lifted the list price of Q195 (232-355)mm*2.5mm*C by RMB90/t (USD14/t) in the past two days to RMB2,250/t (USD353/t) VAT included. “The price of steel billet Q235 150mm*150mm in Tangshan, Hebei province moved up by RMB30/t (USD5/t) last weekend to about RMB1,940/t (USD305/t) VAT included,” he said. Nevertheless, compared with those in surrounding markets, his prices are not competitive and customers place orders inactively. With a current sales volume of less than 50tpd against that of around 1,000t in February, the source has zero stock in hand now and all materials need to be delivered from steel mill. He does not suppose the price will increase further in the following days.
Another Tianjin-based HR strip trader with a trading volume of about 40,000t in 2015 confirmed the price increase. His price for Q195 335mm*2.5mm*C from Qifeng Steel is RMB2,280/t (USD358/t) VAT included, rising by RMB30/t (USD5/t) compared with that of the previous trading day.
Seeing Qifeng Steel moved the price of Q195 (232-355)mm*2.5mm*C up by RMB30/t (USD5/t) on March 21 to RMB2,280/t (USD358/t) on higher steel billet prices, he also followed suit to increase his prices. However, as prices fluctuated so frequently recently, customers without urgent need for materials prefer to hold a wait-and-see attitude now and refuse to place orders. “The price went down by about RMB60/t (USD9/t) last week,” he said, adding that his current sales volume is no more than 100tpd against that of around 1,500t for last month. Holding an inventory of around 1,000t in hand now, the source hopes the price can stabilize in the following days.
A distributor of HR strip in Tangshan, Hebei province with a trading volume of about 20,000t in 2015 told Asian Metal that the price witnesses an upward trend at present. His price for Q195 315mm*2.5mm*C from Ruifeng Steel is RMB2,260/t (USD355/t) VAT included, up by RMB90/t (USD14/t) compared with that of the previous trading day.
The source attributes the price increase to higher purchase cost. According to him, because of the price increase of steel billet, the raw material, Ruifeng Steel lifted the list price of Q195 (232-355)mm*2.5mm*C by RMB90/t (USD14/t) in the past two days to RMB2,250/t (USD353/t) VAT included. “The price of steel billet Q235 150mm*150mm in Tangshan, Hebei province moved up by RMB30/t (USD5/t) last weekend to about RMB1,940/t (USD305/t) VAT included,” he said. Nevertheless, compared with those in surrounding markets, his prices are not competitive and customers place orders inactively. With a current sales volume of less than 50tpd against that of around 1,000t in February, the source has zero stock in hand now and all materials need to be delivered from steel mill. He does not suppose the price will increase further in the following days.
Another Tianjin-based HR strip trader with a trading volume of about 40,000t in 2015 confirmed the price increase. His price for Q195 335mm*2.5mm*C from Qifeng Steel is RMB2,280/t (USD358/t) VAT included, rising by RMB30/t (USD5/t) compared with that of the previous trading day.
Seeing Qifeng Steel moved the price of Q195 (232-355)mm*2.5mm*C up by RMB30/t (USD5/t) on March 21 to RMB2,280/t (USD358/t) on higher steel billet prices, he also followed suit to increase his prices. However, as prices fluctuated so frequently recently, customers without urgent need for materials prefer to hold a wait-and-see attitude now and refuse to place orders. “The price went down by about RMB60/t (USD9/t) last week,” he said, adding that his current sales volume is no more than 100tpd against that of around 1,500t for last month. Holding an inventory of around 1,000t in hand now, the source hopes the price can stabilize in the following days.
