Chinese HRC market slow
2023-03-28 08:20:16 [Print]
BEIJING (Asian Metal) 28 Mar 23 - The domestic HRC market performs inactively at the moment, coupled with participants' wait-and-see attitudes. Presently, the mainstream prices of HRC Q235B 5.75mm*1,500mm*C stand at RMB4,250/t (USD618/t), RMB4,300/t (USD625/t) and RMB4,300/t (USD625/t) D/P respectively in warehouses Tangshan, Shanghai and Guangzhou, similar to late last week. Insiders foresee narrowly stable prices of HRC in the following several days upon the watchful atmosphere in the market.
"We maintain prices flat since last weekend after the slight price rebound of around RMB20/t (USD3/t) late last Friday. End users keep inactive in purchasing discouraged by the downward price trend in the past one week, despite the recovering demand from downstream industries," noted a trader in Tangshan, who sold 400t of HRC Q235B 5.75mm*1,500mm*C at RMB4,250/t (USD618/t) on Monday and last sold 300t of the material at the same price last Sunday. However, he does not plan to move down prices and predicts flat prices in the forthcoming several days seeing the losses of both traders and steel mills. "Steel mills tend to keep prices firm now in view of the losses. Besides, prices of raw materials showed signs of rebounding," added the trader.
Holding around 12,000t in inventory, the trader might sell 15,000t in March, similar to February. The sales volume in the first quarter of 2023 would achieve 48,000t, against 187,000t or so in 2022.
"The market calmed down since late last week. We just sold 30t of HRC Q235B 5.75mm*1,500mm*C at RMB4,300/t (USD625/t) on Monday, and last sold 30t of the material at RMB4,250/t (USD618/t) last Friday morning and did not close any deals late last Friday, while could sell 90t a day in average from last Monday to Wednesday," disclosed a trader in Shanghai. According to him, end users keep cautious about purchasing dragged by insufficient orders for final products and the quick decline in the past one week. "We tried to ask several regular clients on Monday, but none of them showed intention in purchasing," complained the trader. Taking the slow market into consideration, the trader worried about a price decline in the coming several days.
Presently, the trader holds around 1,000t in stock. Based on the regular monthly sales volume of 1,400t, the trader might sell 1,300t of HRC in Mach, identical to February. He estimates that the sales volume would reach 3,600t in the first quarter of 2023, against 14,500t or so in 2022.
"End users remain cautious about purchasing discouraged by the continuous price decreases in the past one week, while the demand from downstream industries keeps improving," noted a trader in Guangzhou. "A regular buyer purchased 300t of HRC Q235B 5.75mm*1,500mm*C at RMB4,300/t (USD625/t) on Monday, while he last bought 500t of the material early last week," added the trader. In the meantime, he pointed out that the market inventory dropped quickly following the reduced delivery from nearby steel mills. "The market stocks reduced to around 600,000t this week from approximately 1 million tons right after the Spring Festival holiday," stated the trader. He remains eager to lift prices stimulated by the losses, and deems prices of HRC might edge up in the upcoming several days.
With the regular monthly sales volume of 5,000t, the trader might 4,500t in March, up from 4,000t in February. The sales volume in the first quarter of 2023 would reach 10,000t, against 35,000t in 2022. At present, the trader holds around 6,000t of stocks.
"We maintain prices flat since last weekend after the slight price rebound of around RMB20/t (USD3/t) late last Friday. End users keep inactive in purchasing discouraged by the downward price trend in the past one week, despite the recovering demand from downstream industries," noted a trader in Tangshan, who sold 400t of HRC Q235B 5.75mm*1,500mm*C at RMB4,250/t (USD618/t) on Monday and last sold 300t of the material at the same price last Sunday. However, he does not plan to move down prices and predicts flat prices in the forthcoming several days seeing the losses of both traders and steel mills. "Steel mills tend to keep prices firm now in view of the losses. Besides, prices of raw materials showed signs of rebounding," added the trader.
Holding around 12,000t in inventory, the trader might sell 15,000t in March, similar to February. The sales volume in the first quarter of 2023 would achieve 48,000t, against 187,000t or so in 2022.
"The market calmed down since late last week. We just sold 30t of HRC Q235B 5.75mm*1,500mm*C at RMB4,300/t (USD625/t) on Monday, and last sold 30t of the material at RMB4,250/t (USD618/t) last Friday morning and did not close any deals late last Friday, while could sell 90t a day in average from last Monday to Wednesday," disclosed a trader in Shanghai. According to him, end users keep cautious about purchasing dragged by insufficient orders for final products and the quick decline in the past one week. "We tried to ask several regular clients on Monday, but none of them showed intention in purchasing," complained the trader. Taking the slow market into consideration, the trader worried about a price decline in the coming several days.
Presently, the trader holds around 1,000t in stock. Based on the regular monthly sales volume of 1,400t, the trader might sell 1,300t of HRC in Mach, identical to February. He estimates that the sales volume would reach 3,600t in the first quarter of 2023, against 14,500t or so in 2022.
"End users remain cautious about purchasing discouraged by the continuous price decreases in the past one week, while the demand from downstream industries keeps improving," noted a trader in Guangzhou. "A regular buyer purchased 300t of HRC Q235B 5.75mm*1,500mm*C at RMB4,300/t (USD625/t) on Monday, while he last bought 500t of the material early last week," added the trader. In the meantime, he pointed out that the market inventory dropped quickly following the reduced delivery from nearby steel mills. "The market stocks reduced to around 600,000t this week from approximately 1 million tons right after the Spring Festival holiday," stated the trader. He remains eager to lift prices stimulated by the losses, and deems prices of HRC might edge up in the upcoming several days.
With the regular monthly sales volume of 5,000t, the trader might 4,500t in March, up from 4,000t in February. The sales volume in the first quarter of 2023 would reach 10,000t, against 35,000t in 2022. At present, the trader holds around 6,000t of stocks.
