Chinese HR strip prices go down
2017-04-12 09:32:47 [Print]
BEIJING (Asian Metal) 12 Apr 17 - Chinese HR strip prices are going down for the time being because of lower raw material costs and decrease in steel mills’ list prices. Current mainstream market prices of Q195 (232-355)mm*2.5mm*C in Tianjin are about RMB3,200/t (USD464/t) VAT included with the payment of D/P. Insiders do not think the market will improve in the near future.
A distributor of HR strip in Tianjin told Asian Metal that the price sees a downward trend at present. His price for Q195 315mm*2.5mm*C from Rentong Steel is RMB3,200/t (USD464/t) VAT included, down by RMB30/t (USD4/t) compared with that of the previous trading day.
Attributing the price decrease to lower purchase cost, the source revealed Rentong Steel reduced the list price for Q195 (232-355)mm*2.5mm*C by RMB30/t (USD4/t) yesterday to RMB3,200/t (USD464/t) VAT included on downward raw material prices of steel billet. According to him, the price of steel billet Q235 150mm*150mm in Tangshan, Hebei province fell by RMB70/t (USD10/t) this week to about RMB2,910/t (USD422/t) VAT included. However, customers without urgent need for materials are expecting the price to drop further and refusing to place orders now. With few deals concluded now against that of about 3,000t for last month, the source supposes the market will continue to be dim in the following days and he has an inventory of around 1,000t in hand.
A distributor of HR strip in Tangshan, Hebei province confirmed the price decrease. His price for Q195 315mm*2.5mm*C from Ruifeng Steel is RMB3,130/t (USD453/t) VAT included, RMB30/t (USD4/t) lower than that of the previous trading day.
According to the source, Ruifeng Steel also decreased the list price of HR strip Q195 (232-355)mm*2.5mm*C by RMB30/t (USD4/t) on 11th April to RMB3,120/t (USD452/t) VAT included. Nevertheless, the market sales performance continues to be poor at the moment under customers’ wait-and-see attitude. His current sales volume is no more than 300tpd against that of around 10,000t for last month. Holding a stockpile of about 5,000t in hand now, the source is not optimistic about the market outlook.
Another HR strip trader in Guangzhou, Guangdong province also reported to Asian Metal that the price for Q195 315mm*2.5mm*C from Ruifeng Steel is RMB3,310/t (USD480/t) VAT included, falling by RMB20/t (USD3/t) compared with that of the previous trading day.
Following the price decrease in North China, the source has reduced his prices by RMB40/t (USD6/t) this week. However, with few deals concluded now against that of about 3,000t for last month, he complained demand from downstream customers is unlikely to be released in the short term and local traders have high sales pressure. “Customers just purchase materials in small quantities for urgent need,” he said, adding that he has a small stockpile of no more than 1,000t to avoid risks. The source does not believe the market will recover in the next few days.
A distributor of HR strip in Tianjin told Asian Metal that the price sees a downward trend at present. His price for Q195 315mm*2.5mm*C from Rentong Steel is RMB3,200/t (USD464/t) VAT included, down by RMB30/t (USD4/t) compared with that of the previous trading day.
Attributing the price decrease to lower purchase cost, the source revealed Rentong Steel reduced the list price for Q195 (232-355)mm*2.5mm*C by RMB30/t (USD4/t) yesterday to RMB3,200/t (USD464/t) VAT included on downward raw material prices of steel billet. According to him, the price of steel billet Q235 150mm*150mm in Tangshan, Hebei province fell by RMB70/t (USD10/t) this week to about RMB2,910/t (USD422/t) VAT included. However, customers without urgent need for materials are expecting the price to drop further and refusing to place orders now. With few deals concluded now against that of about 3,000t for last month, the source supposes the market will continue to be dim in the following days and he has an inventory of around 1,000t in hand.
A distributor of HR strip in Tangshan, Hebei province confirmed the price decrease. His price for Q195 315mm*2.5mm*C from Ruifeng Steel is RMB3,130/t (USD453/t) VAT included, RMB30/t (USD4/t) lower than that of the previous trading day.
According to the source, Ruifeng Steel also decreased the list price of HR strip Q195 (232-355)mm*2.5mm*C by RMB30/t (USD4/t) on 11th April to RMB3,120/t (USD452/t) VAT included. Nevertheless, the market sales performance continues to be poor at the moment under customers’ wait-and-see attitude. His current sales volume is no more than 300tpd against that of around 10,000t for last month. Holding a stockpile of about 5,000t in hand now, the source is not optimistic about the market outlook.
Another HR strip trader in Guangzhou, Guangdong province also reported to Asian Metal that the price for Q195 315mm*2.5mm*C from Ruifeng Steel is RMB3,310/t (USD480/t) VAT included, falling by RMB20/t (USD3/t) compared with that of the previous trading day.
Following the price decrease in North China, the source has reduced his prices by RMB40/t (USD6/t) this week. However, with few deals concluded now against that of about 3,000t for last month, he complained demand from downstream customers is unlikely to be released in the short term and local traders have high sales pressure. “Customers just purchase materials in small quantities for urgent need,” he said, adding that he has a small stockpile of no more than 1,000t to avoid risks. The source does not believe the market will recover in the next few days.
