Chinese section steel demand improves
2023-03-14 08:19:41 [Print]
BEIJING (Asian Metal) 14 Mar 23 - The demand for section steel in most domestic regions increases now, stimulating producers and traders to raise prices. Currently, the mainstream prices of angle steel Q235 50mm*50mm*5mm hover at RMB4,400/t (USD639/t) and RMB4,670/t (USD679/t) D/P net weight respectively in Tangshan and Guangzhou, up by RMB20/t (USD3/t) and RMB30/t (USD4/t) from the last trading day, while those in Shanghai decreased by RMB20/t (USD3/t) to RMB4,620/t (USD671/t). Insiders foresee firm prices of section steel in the following several days seeing the improving demand but cautious purchasing attitudes of end users.
"The confidence of market participants strengthened on Monday stimulated by stimulant policies from the central government, and we lifted prices of angle steel Q235 50mm*50mm*5mm to RMB4,410/t (USD641/t) with the concession of RMB10/t (USD1.5/t) on Monday after cutting prices by RMB20/t (USD3/t) during the weekend," noted a producer in Tangshan, who last sold around 5,000t at RMB4,380/t (USD636/t) last Sunday and sold 15,000t of the material at RMB4,400/t (USD639/t) on Monday. According to him, the demand from downstream industries improved gradually with the weather getting warmer and the rising investment on infrastructure. Taking the warmer market into consideration, the producer predicts further price increase in the coming several days.
Holding around 270,000t of stocks, down from 300,000t early this month, the producer might produce 250,000t in March, similar to February. Based on an annual production capacity of 2.8 million tons, the producer recorded the output of approximately 500,000t from January to February of 2023, against 2.8 million tons in 2022.
A trader in Guangzhou confirms the improving demand from downstream industries. "With most construction projects restarting operation, the demand increases gradually. We witnessed perfect sales performance last week, with the average daily sales volume reaching 1,000t. However, end users show resistance towards the continuous price increases this week, and we just sold 800t of the material at RMB4,670/t (USD679/t) on Monday. Even though, it remains higher than 500t in average in late February," revealed the trader. According to him, stimulated by the rising production costs and warming market, steel mills raise EXW prices of section steel in succession, and he has to follow suit, struggling on the edge of suffering. Upon the rising prices of steel mills but the low purchasing activities of end users, the trader foresees stable prices of section steel in the upcoming several days.
With the regular monthly sales volume of 40,000t, the trader estimates that the sales volume would reach 30,000t in March, up from 20,000t in February. The trader sold approximately 28,000t in the first two months of 2023 and 365,000t in 2022, holding about 40,000t in stock right now.
"The demand from downstream industries improves gradually, but remains far from strong. Besides, end users keep inactive in purchasing. We tried to contact with several regular clients on Monday, but they tended to separate purchasing volumes, either dragged by the insufficient orders or tight capital flow," revealed a trader in Shanghai, who last sold 500t of section steel at RMB4,640/t (USD674/t) last Friday. To promote sales, the trader cut prices of angle steel Q235 50mm*50mm*5mm to RMB4,620/t (USD671/t) on Monday, and finally sold 500t, while the sales volume achieved 600t in the middle of February. The trader believes it takes time for the market to recover thoroughly and prices of section steel might keep flat in the forthcoming several days.
Based on the regular monthly sales volume of 12,000t, the trader might sell 10,000t in March, similar to February. The trader recorded the total sales volume of around 20,000t in January and February of 2023 and about 140,000t in 2022. At present, the trader holds around 9,000t of stocks, up from 7,000t in late February.
"The confidence of market participants strengthened on Monday stimulated by stimulant policies from the central government, and we lifted prices of angle steel Q235 50mm*50mm*5mm to RMB4,410/t (USD641/t) with the concession of RMB10/t (USD1.5/t) on Monday after cutting prices by RMB20/t (USD3/t) during the weekend," noted a producer in Tangshan, who last sold around 5,000t at RMB4,380/t (USD636/t) last Sunday and sold 15,000t of the material at RMB4,400/t (USD639/t) on Monday. According to him, the demand from downstream industries improved gradually with the weather getting warmer and the rising investment on infrastructure. Taking the warmer market into consideration, the producer predicts further price increase in the coming several days.
Holding around 270,000t of stocks, down from 300,000t early this month, the producer might produce 250,000t in March, similar to February. Based on an annual production capacity of 2.8 million tons, the producer recorded the output of approximately 500,000t from January to February of 2023, against 2.8 million tons in 2022.
A trader in Guangzhou confirms the improving demand from downstream industries. "With most construction projects restarting operation, the demand increases gradually. We witnessed perfect sales performance last week, with the average daily sales volume reaching 1,000t. However, end users show resistance towards the continuous price increases this week, and we just sold 800t of the material at RMB4,670/t (USD679/t) on Monday. Even though, it remains higher than 500t in average in late February," revealed the trader. According to him, stimulated by the rising production costs and warming market, steel mills raise EXW prices of section steel in succession, and he has to follow suit, struggling on the edge of suffering. Upon the rising prices of steel mills but the low purchasing activities of end users, the trader foresees stable prices of section steel in the upcoming several days.
With the regular monthly sales volume of 40,000t, the trader estimates that the sales volume would reach 30,000t in March, up from 20,000t in February. The trader sold approximately 28,000t in the first two months of 2023 and 365,000t in 2022, holding about 40,000t in stock right now.
"The demand from downstream industries improves gradually, but remains far from strong. Besides, end users keep inactive in purchasing. We tried to contact with several regular clients on Monday, but they tended to separate purchasing volumes, either dragged by the insufficient orders or tight capital flow," revealed a trader in Shanghai, who last sold 500t of section steel at RMB4,640/t (USD674/t) last Friday. To promote sales, the trader cut prices of angle steel Q235 50mm*50mm*5mm to RMB4,620/t (USD671/t) on Monday, and finally sold 500t, while the sales volume achieved 600t in the middle of February. The trader believes it takes time for the market to recover thoroughly and prices of section steel might keep flat in the forthcoming several days.
Based on the regular monthly sales volume of 12,000t, the trader might sell 10,000t in March, similar to February. The trader recorded the total sales volume of around 20,000t in January and February of 2023 and about 140,000t in 2022. At present, the trader holds around 9,000t of stocks, up from 7,000t in late February.
