Chinese HR strip prices go up
2016-10-13 08:58:51 [Print]
BEIJING (Asian Metal) 13 Oct 16 - Chinese HR strip prices see an upward trend for the time being mainly supported by higher raw material costs and increase in steel mills’ list prices. Current mainstream market prices of Q195 (232-355)mm*2.5mm*C in Tianjin are about RMB2,530/t (USD377/t) VAT included. As demand from customers does not become better, insiders do not expect the price to rise further in the next few days.
A distributor of HR strip in Tianjin with a trading volume of about 60,000t in 2015 told Asian Metal that the price is moving up at present. His price for Q195 315mm*2.5mm*C from Tiangang United Special Steel is RMB2,530/t (USD377/t) VAT included, up by RMB30/t (USD4/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, Tiangang United Special Steel raised the list price for Q195 (232-355)mm*2.5mm*C by RMB30/t (USD4/t) on October 12 to RMB2,500/t (USD372/t) VAT included. “The price of steel billet Q235 150mm*150mm in Tangshan, Hebei province went up by RMB50/t (USD7/t) this week to about RMB2,140/t (USD319/t) VAT included,” he said. However, with a sales volume of no more than 100tpd against that of about 3,000t for last month, the source said the market sales performance does not improve under customers’ cautious attitude. The source does not expect the price to increase further in the following days and he holds an inventory of about 1,000t in hand now.
A distributor of HR strip in Tangshan, Hebei province confirmed the price increase. His price for Q195 315mm*2.5mm*C from Ruifeng Steel is RMB2,530/t (USD377/t) VAT included, RMB20/t (USD3/t) higher than that of the previous trading day.
Seeing Ruifeng Steel lifted the list price of HR strip Q195 (232-355)mm*2.5mm*C by RMB20/t (USD3/t) on October 12 to RMB2,520/t (USD375/t) VAT included, the source increased his prices accordingly. Nevertheless, his prices are not competitive and customers in surrounding markets refuse to place orders now. “HR strip prices used to be about RMB50/t (USD7/t) lower than those in nearby cities,” he said, adding that the price of Q195 315mm*2.5mm*C in Langfang, Hebei province is RMB2,540/t (USD378/t) now. With a current sales volume of less than 150tpd against that of around about 5,000t in September, the source believes the price is likely to go down in the coming days if steel billet prices decrease.
Another Guangzhou-based HR strip trader also reported to Asian Metal that his price for Q195 335mm*2.5mm*C from Ruifeng Steel is RMB2,740/t (USD408/t) VAT included, rising by RMB30/t (USD4/t) compared with that of the previous trading day.
Following the price increase in North China, the source also moved up his prices. “I normally regard the price trend in Hebei province as the benchmark,” he said, adding that he has increased the price by a total of RMB60/t (USD9/t) this week. However, seeing the price increase, only some end users purchase the material in small quantities for urgent need and his current sales volume is below 100tpd against that of about 3,000t for last month. Holding a stockpile of less than 1,000t in hand, the source believes the price will be stable in the next few days.
A distributor of HR strip in Tianjin with a trading volume of about 60,000t in 2015 told Asian Metal that the price is moving up at present. His price for Q195 315mm*2.5mm*C from Tiangang United Special Steel is RMB2,530/t (USD377/t) VAT included, up by RMB30/t (USD4/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, Tiangang United Special Steel raised the list price for Q195 (232-355)mm*2.5mm*C by RMB30/t (USD4/t) on October 12 to RMB2,500/t (USD372/t) VAT included. “The price of steel billet Q235 150mm*150mm in Tangshan, Hebei province went up by RMB50/t (USD7/t) this week to about RMB2,140/t (USD319/t) VAT included,” he said. However, with a sales volume of no more than 100tpd against that of about 3,000t for last month, the source said the market sales performance does not improve under customers’ cautious attitude. The source does not expect the price to increase further in the following days and he holds an inventory of about 1,000t in hand now.
A distributor of HR strip in Tangshan, Hebei province confirmed the price increase. His price for Q195 315mm*2.5mm*C from Ruifeng Steel is RMB2,530/t (USD377/t) VAT included, RMB20/t (USD3/t) higher than that of the previous trading day.
Seeing Ruifeng Steel lifted the list price of HR strip Q195 (232-355)mm*2.5mm*C by RMB20/t (USD3/t) on October 12 to RMB2,520/t (USD375/t) VAT included, the source increased his prices accordingly. Nevertheless, his prices are not competitive and customers in surrounding markets refuse to place orders now. “HR strip prices used to be about RMB50/t (USD7/t) lower than those in nearby cities,” he said, adding that the price of Q195 315mm*2.5mm*C in Langfang, Hebei province is RMB2,540/t (USD378/t) now. With a current sales volume of less than 150tpd against that of around about 5,000t in September, the source believes the price is likely to go down in the coming days if steel billet prices decrease.
Another Guangzhou-based HR strip trader also reported to Asian Metal that his price for Q195 335mm*2.5mm*C from Ruifeng Steel is RMB2,740/t (USD408/t) VAT included, rising by RMB30/t (USD4/t) compared with that of the previous trading day.
Following the price increase in North China, the source also moved up his prices. “I normally regard the price trend in Hebei province as the benchmark,” he said, adding that he has increased the price by a total of RMB60/t (USD9/t) this week. However, seeing the price increase, only some end users purchase the material in small quantities for urgent need and his current sales volume is below 100tpd against that of about 3,000t for last month. Holding a stockpile of less than 1,000t in hand, the source believes the price will be stable in the next few days.
