HRC Market Report September 2017
2017-10-12 12:58:48 【Print】
The following is a brief synopsis of the report. Your access is restricted as it is a subscription based service.
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1. Market review
Though September is the traditional peak season for finished steel, the market performance failed to improve and was even worse than that in July and August dragged down by decreasing price signal as well as serious environmental protection pressures. Lots of machinery processors especially those in North China were forced to halt production with the holding of the 19th CPC National Congress. Besides, end users who were under production were inactive in purchasing, complaining prices for final products increased slowly and far less than those of HRC, both leading to shrinking demand for HRC. Reporting unsatisfactory sales performances, traders showed no confidence in the market outlook and were cautious about supplementing inventories, though more and more mills announced to reduce output from October to next March. Leading producers such as Baosteel, Ansteel, Bengang Steel and HBIS narrowed HRC prices markups for November production to around RMB350/t (USD53/t) from those of RMB500/t (USD76/t) last month, indicating they were not so confident of the market outlook. Considering the supply and the downstream demand will be reduced in October, insiders do not think HRC prices will change much.
Though September is the traditional peak season for finished steel, the market performance failed to improve and was even worse than that in July and August dragged down by decreasing price signal as well as serious environmental protection pressures. Lots of machinery processors especially those in North China were forced to halt production with the holding of the 19th CPC National Congress. Besides, end users who were under production were inactive in purchasing, complaining prices for final products increased slowly and far less than those of HRC, both leading to shrinking demand for HRC. Reporting unsatisfactory sales performances, traders showed no confidence in the market outlook and were cautious about supplementing inventories, though more and more mills announced to reduce output from October to next March. Leading producers such as Baosteel, Ansteel, Bengang Steel and HBIS narrowed HRC prices markups for November production to around RMB350/t (USD53/t) from those of RMB500/t (USD76/t) last month, indicating they were not so confident of the market outlook. Considering the supply and the downstream demand will be reduced in October, insiders do not think HRC prices will change much.
