Thai HRC prices down
2016-06-08 09:01:23 [Print]
BEIJING (Asian Metal) 8 Jun 16 - HRC prices continued to go down in Thailand this week due to the slow market. Currently the mainstream price of SS400 3.0mm*1,250mm*C from local mills is THB17,500-17,800/t (USD497-505/t) 7% Vat excluded, down by THB500/t (USD14/t) over last week. Insiders foresee a further price decline next week seeing the poor market performance.
A trader in Ayutthaya told Asian Metal that his price for SS400 3.0mm*1,250mm*C from local mills is THB17,500/t (USD497/t) 7% Vat excluded, down by THB500/t (USD14/t) over last week.
Attributing the price decline to the inactive market and downward price trend in China, one of the major origins for Thai HRC, the source stated that few construction projects are operated in the rainy season, and thus the rigid demand is absent, leading to a slow market. Meanwhile, mills in China have been cutting HRC export prices in recent one month, with a markdown of around 27%, weakening Thai participants’ confidence in the market outlook. With the sales volume of 20tpd against 40tpd in early March, the source deems the HRC price is likely to go down again in the coming week. Holding a stock of 1,000t at hand against 1,500t at the beginning of the year, he sold 900t totally in May.
Another trader in Muang claimed his price for SS400 3.0mm*1,250mm*C from local mills is THB17,800/t (USD505/t) 7% Vat excluded, decreased by THB500/t (USD14/t) over last week
According to the source, as banks restrict loans, end users face serious capital shortage and fail to purchase in large quantities, and thus the downstream demand remains insufficient. In addition, local HRC producers moved list prices down by THB300-400/t (USD8.5-11.3/t) recently, and traders had to follow suit. With the sales volume of 30tpd, half of the projected level, he is a little bit pessimistic about the market outlook. To avoid potential risks, the source has reduced the stock from 5,000t at the beginning of the year to 2,000t in recent two months. He sold 1,000t last month.
A trader in Ayutthaya told Asian Metal that his price for SS400 3.0mm*1,250mm*C from local mills is THB17,500/t (USD497/t) 7% Vat excluded, down by THB500/t (USD14/t) over last week.
Attributing the price decline to the inactive market and downward price trend in China, one of the major origins for Thai HRC, the source stated that few construction projects are operated in the rainy season, and thus the rigid demand is absent, leading to a slow market. Meanwhile, mills in China have been cutting HRC export prices in recent one month, with a markdown of around 27%, weakening Thai participants’ confidence in the market outlook. With the sales volume of 20tpd against 40tpd in early March, the source deems the HRC price is likely to go down again in the coming week. Holding a stock of 1,000t at hand against 1,500t at the beginning of the year, he sold 900t totally in May.
Another trader in Muang claimed his price for SS400 3.0mm*1,250mm*C from local mills is THB17,800/t (USD505/t) 7% Vat excluded, decreased by THB500/t (USD14/t) over last week
According to the source, as banks restrict loans, end users face serious capital shortage and fail to purchase in large quantities, and thus the downstream demand remains insufficient. In addition, local HRC producers moved list prices down by THB300-400/t (USD8.5-11.3/t) recently, and traders had to follow suit. With the sales volume of 30tpd, half of the projected level, he is a little bit pessimistic about the market outlook. To avoid potential risks, the source has reduced the stock from 5,000t at the beginning of the year to 2,000t in recent two months. He sold 1,000t last month.
