Chinese section steel prices flat
2023-03-30 08:22:16 [Print]
BEIJING (Asian Metal) 30 Mar 23 - After the slight rebound of RMB20-30/t (USD3-4/t) on Tuesday, both producers and traders maintained section steel prices flat on Wednesday. The current mainstream prices of angle steel Q235 50mm*50mm*5mm stand at RMB4,230/t (USD614/t), RMB4,510/t (USD655/t) and RMB4,520/t (USD656/t) D/P net weight respectively in Tangshan, Shanghai and Guangzhou. Insiders foresee stable prices in the coming several days seeing the watchful atmosphere in the market.
"We keep prices of section steel stable right now after the price markup of RMB30/t (USD4/t) on Tuesday," noted a producer in Tangshan, Hebei. "We sold around 23,000t of the material on Tuesday as end users watching the market previously began placing orders boosted by the price rebound, while the daily sales volume stood at around 15,000t last week," added the producer. According to him, the demand from downstream industries kept improving even in the past one week when prices fell. Besides, prices of raw materials fluctuate at the high level, which means the cost support for section steel remains strong. Therefore, the producer expects for a slight price increase in the forthcoming several days.
Reporting an annual production capacity of 2.8 million tons, the producer would produce 250,000t of section steel in March, identical to February. The output in the first quarter of 2023 might achieve 700,000t, against 2.8 million tons in 2022, holding around 250,000t in inventory right now.
"Dragged by the poor sales performance, we failed to raise prices further on Wednesday after the price markup of RMB20/t (USD3/t) on Tuesday," disclosed a trader in Shanghai, offering RMB4,510/t (USD655/t) for angle steel Q235 50mm*50mm*5mm. According to him, though projects start operation, end users remain inactive in purchasing dragged by insufficient orders for final products and capital pressures. "A regular buyer purchased 300t of the material at RMB4,510/t (USD655/t) on Wednesday, while at least bought 500t at one singe time in early February," complained the trader. Restricted by the slow market, his inventory increased to 10,000t this week from 7,000t in late February. Nevertheless, considering that steel mills keep eager to move up prices, the trader remains reluctant to cut prices down and predicts stable prices of section steel in the upcoming several days.
Based on the regular monthly sales volume of 12,000t, the trader might sell 10,000t in March, similar to February. The sales volume in the first quarter of 2023 might reach 28,000t, against 140,000t or so in 2022.
Offering RMB4,520/t (USD656/t) without concession for angle steel Q235 50mm*50mm*5mm, a trader in Guangzhou reported stable prices on Wednesday after the slight increase of RMB20/t (USD3/t) on Tuesday. "We tried to raise prices by RMB20/t (USD3/t) on Tuesday following steel mills in North China, but end users keep cautious about purchasing after the continuous price declines in the past 10 days. Finally, we sold 1,000t of the material at RMB4,520/t (USD656/t), while would sell 1,200t a day early this month. Therefore, we kept prices stable on Wednesday," explained the trader. Meanwhile, he pointed out the demand from downstream industries improved gradually, but end users tend to hold back from purchasing discouraged by the frequent price fluctuations. "Regular clients tend to separate purchasing volumes to avoid potential risks," added the trader. Given the rising prices from steel mills but low purchasing activities of downstream customers, the trader deems prices of section steel would go on stable in the following several days.
Holding around 40,000t of stocks, the trader might sell 30,000t in March, up from 20,000t in February. With the typical sales volume of 40,000tpm, the trader estimates that the sales volume would achieve 58,000t in the first quarter of 2023, against 365,000t or so in 2022.
"We keep prices of section steel stable right now after the price markup of RMB30/t (USD4/t) on Tuesday," noted a producer in Tangshan, Hebei. "We sold around 23,000t of the material on Tuesday as end users watching the market previously began placing orders boosted by the price rebound, while the daily sales volume stood at around 15,000t last week," added the producer. According to him, the demand from downstream industries kept improving even in the past one week when prices fell. Besides, prices of raw materials fluctuate at the high level, which means the cost support for section steel remains strong. Therefore, the producer expects for a slight price increase in the forthcoming several days.
Reporting an annual production capacity of 2.8 million tons, the producer would produce 250,000t of section steel in March, identical to February. The output in the first quarter of 2023 might achieve 700,000t, against 2.8 million tons in 2022, holding around 250,000t in inventory right now.
"Dragged by the poor sales performance, we failed to raise prices further on Wednesday after the price markup of RMB20/t (USD3/t) on Tuesday," disclosed a trader in Shanghai, offering RMB4,510/t (USD655/t) for angle steel Q235 50mm*50mm*5mm. According to him, though projects start operation, end users remain inactive in purchasing dragged by insufficient orders for final products and capital pressures. "A regular buyer purchased 300t of the material at RMB4,510/t (USD655/t) on Wednesday, while at least bought 500t at one singe time in early February," complained the trader. Restricted by the slow market, his inventory increased to 10,000t this week from 7,000t in late February. Nevertheless, considering that steel mills keep eager to move up prices, the trader remains reluctant to cut prices down and predicts stable prices of section steel in the upcoming several days.
Based on the regular monthly sales volume of 12,000t, the trader might sell 10,000t in March, similar to February. The sales volume in the first quarter of 2023 might reach 28,000t, against 140,000t or so in 2022.
Offering RMB4,520/t (USD656/t) without concession for angle steel Q235 50mm*50mm*5mm, a trader in Guangzhou reported stable prices on Wednesday after the slight increase of RMB20/t (USD3/t) on Tuesday. "We tried to raise prices by RMB20/t (USD3/t) on Tuesday following steel mills in North China, but end users keep cautious about purchasing after the continuous price declines in the past 10 days. Finally, we sold 1,000t of the material at RMB4,520/t (USD656/t), while would sell 1,200t a day early this month. Therefore, we kept prices stable on Wednesday," explained the trader. Meanwhile, he pointed out the demand from downstream industries improved gradually, but end users tend to hold back from purchasing discouraged by the frequent price fluctuations. "Regular clients tend to separate purchasing volumes to avoid potential risks," added the trader. Given the rising prices from steel mills but low purchasing activities of downstream customers, the trader deems prices of section steel would go on stable in the following several days.
Holding around 40,000t of stocks, the trader might sell 30,000t in March, up from 20,000t in February. With the typical sales volume of 40,000tpm, the trader estimates that the sales volume would achieve 58,000t in the first quarter of 2023, against 365,000t or so in 2022.
