Chinese NGO electrical steel prices go up further
2017-08-17 08:56:42 [Print]
BEIJING (Asian Metal) 17 Aug 17 - Chinese non-grain oriented electrical steel prices are still rising for the time being mainly supported by increase in steel mills’ list prices and the low market inventory. The current mainstream market price of B50A800 0.5mm*1,200mm*C from Baosteel is about RMB6,600/t (USD987/t) VAT included by D/P in Shanghai. Insiders suppose the market will continue to be quiet in the coming days on weak customer demand.
A Shanghai-based distributor of non-grain oriented electrical steel reported to Asian Metal that the price remains upward at present. His price of B50A800 0.5mm*1,200mm*C from Baosteel is RMB6,600/t (USD987/t) VAT included, up by RMB100/t (USD15/t) this week.
The source attributes the price increase to higher raw material costs. According to him, Baosteel announced to raise NGO electrical steel prices for September production on 10th August and the list price for B50A800 0.5mm*1,200mm*C was RMB6,400/t (USD957/t), much higher than that of RMB6,000/t (USD897/t) for August production. In addition, Baosteel will conduct the maintenance on hard rolling mill late this month, and the output for September will decrease by more than 50%. However, with few deals concluded this week against the sales volume of 500-600t for last month, he said demand from customers continues to be weak amid the traditionally low season. The source does not think the market sales performance will improve in the next few days and his current inventory is less than 300t.
Another trader in Wuhan, Hubei province confirmed the price increase. His price of 50WW800 0.5mm*1,200mm*C from WISCO is RMB6,200/t (USD927/t) VAT included, rising by RMB100/t (USD15/t) this week.
According to the source, WISCO also raised NGO electrical steel prices for September production by about RMB400/t (USD60/t) on 11th August. Besides, seeing higher purchase cost and weak customer demand, traders are still reluctant to build large stockpiles to avoid risks. “Most traders will not order new materials unless receiving orders from customers,” he said, adding that his stockpile keeps at below 200t. Nevertheless, seeing the continuous price increase in the traditionally low season, customers without urgent need for materials are just taking a cautious attitude now and refusing to place orders. With few deals concluded now against the sales volume of 300-400t for last month, the source believes the market will continue to be quiet in the following days.
A Shanghai-based distributor of non-grain oriented electrical steel reported to Asian Metal that the price remains upward at present. His price of B50A800 0.5mm*1,200mm*C from Baosteel is RMB6,600/t (USD987/t) VAT included, up by RMB100/t (USD15/t) this week.
The source attributes the price increase to higher raw material costs. According to him, Baosteel announced to raise NGO electrical steel prices for September production on 10th August and the list price for B50A800 0.5mm*1,200mm*C was RMB6,400/t (USD957/t), much higher than that of RMB6,000/t (USD897/t) for August production. In addition, Baosteel will conduct the maintenance on hard rolling mill late this month, and the output for September will decrease by more than 50%. However, with few deals concluded this week against the sales volume of 500-600t for last month, he said demand from customers continues to be weak amid the traditionally low season. The source does not think the market sales performance will improve in the next few days and his current inventory is less than 300t.
Another trader in Wuhan, Hubei province confirmed the price increase. His price of 50WW800 0.5mm*1,200mm*C from WISCO is RMB6,200/t (USD927/t) VAT included, rising by RMB100/t (USD15/t) this week.
According to the source, WISCO also raised NGO electrical steel prices for September production by about RMB400/t (USD60/t) on 11th August. Besides, seeing higher purchase cost and weak customer demand, traders are still reluctant to build large stockpiles to avoid risks. “Most traders will not order new materials unless receiving orders from customers,” he said, adding that his stockpile keeps at below 200t. Nevertheless, seeing the continuous price increase in the traditionally low season, customers without urgent need for materials are just taking a cautious attitude now and refusing to place orders. With few deals concluded now against the sales volume of 300-400t for last month, the source believes the market will continue to be quiet in the following days.
