Chinese HR strip prices increase
2016-11-02 09:01:30 [Print]
BEIJING (Asian Metal) 2 Nov 16 - Chinese HR strip prices are going up 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 RMB2,730/t (USD403/t) VAT included. However, considering demand from customers keeps weak, insiders do not expect the price to rise further in the following days.
A distributor of HR strip in Tianjin with a trading volume of about 50,000t in 2015 told Asian Metal that the price sees an upward trend at present. His price for Q195 315mm*2.5mm*C from Rentong Steel is RMB2,730/t (USD403/t) VAT included, up by RMB20/t (USD3/t) compared with that of the previous trading day.
The source attributes the price increase to higher purchase cost. According to him, Rentong Steel raised the list price for Q195 (232-355)mm*2.5mm*C by RMB30/t (USD4/t) early this week to RMB2,720/t (USD401/t) VAT included because of the price increase of steel billet, the raw material. “The price of steel billet Q235 150mm*150mm in Tangshan, Hebei province increased by RMB50/t (USD7/t) yesterday to about RMB2,320/t (USD342/t) VAT included,” he said. Nevertheless, with a sales volume of less than 100tpd against that of about 2,000t for last month, the source complained the sales performance does not become better under customers’ wait-and-see attitude. With an inventory of 500-600t in hand now, the source does not think the price will go up further in the next few days.
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 RMB2,700/t (USD399/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 1 November to RMB2,690/t (USD397/t) VAT included, the source followed suit. However, as current prices in Tangshan are not competitive, customers in surrounding markets are reluctant to place orders. “The price of Q195 315mm*2.5mm*C in Langfang, Hebei province is RMB2,710/t (USD400/t) now,” he said, adding that HR strip prices in Tangshan used to be about RMB50/t (USD7/t) lower than those in nearby cities. With a current sales volume of no more than 50tpd against that of around 1500t in October, the source thinks the price will be stable in the coming days.
Another HR strip trader in Wuxi, Jiangsu province also reported to Asian Metal that his price for Q195 315mm*2.5mm*C from Ruifeng Steel is RMB2,860/t (USD422/t) VAT included, up by RMB40/t (USD6/t) compared with that of the previous trading day.
Following the price increase in North China, the source raised his prices by about RMB220/t (USD32/t) in the past month. However, seeing the sharp price increase, customers with no urgent need for materials still refuse to place orders now and the market sales performance does not improve. His current sales volume remains at no more than 200tpd against that of about 5,000t for last month. The source is not optimistic about the market outlook and he has an inventory of around 2,000t in hand now.
A distributor of HR strip in Tianjin with a trading volume of about 50,000t in 2015 told Asian Metal that the price sees an upward trend at present. His price for Q195 315mm*2.5mm*C from Rentong Steel is RMB2,730/t (USD403/t) VAT included, up by RMB20/t (USD3/t) compared with that of the previous trading day.
The source attributes the price increase to higher purchase cost. According to him, Rentong Steel raised the list price for Q195 (232-355)mm*2.5mm*C by RMB30/t (USD4/t) early this week to RMB2,720/t (USD401/t) VAT included because of the price increase of steel billet, the raw material. “The price of steel billet Q235 150mm*150mm in Tangshan, Hebei province increased by RMB50/t (USD7/t) yesterday to about RMB2,320/t (USD342/t) VAT included,” he said. Nevertheless, with a sales volume of less than 100tpd against that of about 2,000t for last month, the source complained the sales performance does not become better under customers’ wait-and-see attitude. With an inventory of 500-600t in hand now, the source does not think the price will go up further in the next few days.
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 RMB2,700/t (USD399/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 1 November to RMB2,690/t (USD397/t) VAT included, the source followed suit. However, as current prices in Tangshan are not competitive, customers in surrounding markets are reluctant to place orders. “The price of Q195 315mm*2.5mm*C in Langfang, Hebei province is RMB2,710/t (USD400/t) now,” he said, adding that HR strip prices in Tangshan used to be about RMB50/t (USD7/t) lower than those in nearby cities. With a current sales volume of no more than 50tpd against that of around 1500t in October, the source thinks the price will be stable in the coming days.
Another HR strip trader in Wuxi, Jiangsu province also reported to Asian Metal that his price for Q195 315mm*2.5mm*C from Ruifeng Steel is RMB2,860/t (USD422/t) VAT included, up by RMB40/t (USD6/t) compared with that of the previous trading day.
Following the price increase in North China, the source raised his prices by about RMB220/t (USD32/t) in the past month. However, seeing the sharp price increase, customers with no urgent need for materials still refuse to place orders now and the market sales performance does not improve. His current sales volume remains at no more than 200tpd against that of about 5,000t for last month. The source is not optimistic about the market outlook and he has an inventory of around 2,000t in hand now.
