Chinese section steel prices down
2023-04-05 08:52:42 [Print]
BEIJING (Asian Metal) 5 Apr 23 - Both producers and traders of section steel moved down prices on Tuesday discouraged by the prices decline of raw materials and the slow market. Presently, the prevailing prices of angle steel Q235 50mm*50mm*5mm hover at RMB4,250/t (USD618/t) and RMB4,450/t (USD647/t) in Tianjin and Guangzhou respectively, down by RMB90/t (USD13/t) from Monday, and those of H-beam steel Q235 200*200mm hover at RMB4,220/t (USD614/t) in Shanghai, down by RMB10/t (USD1.5/t) compared with Monday. Upon the slow market, insiders foresee further price decline in the coming several days.
"Prices of steel billet witnessed the total markdown of around RMB70/t (USD10/t) from last weekend to this Monday, and steel mills in Tangshan moved down prices in succession. Therefore, we deceased prices on Tuesday," noted a trader in Tianjin. Quoting RMB4,250/t (USD618/t) without concession for angle steel Q235 50mm*50mm*5mm, the trader did not close any deals on Tuesday, and last sold 200t of the material at RMB4,340/t (USD631/t) on Monday. In the meantime, the trader disclosed that the sudden price drop and the rain also weakened downstream customers' purchasing activities to some extent on Tuesday. Considering that the demand from downstream industries remains soft, the trader worries prices of section steel would edge down further in the coming several days.
Holding around 2,000t of stocks, the trader would sell 6,000t in April, identical to March. With the regular monthly sales volume of 10,000t, he recorded the sales volume of around 17,000t in the first quarter of 2023, against 63,000t more or less in 2022.
"It kept raining for around two weeks, which means it's hard for construction projects to operate, leading to the shrinking demand for section steel. Therefore, we have to move down prices of section steel when those of raw materials decreased," revealed a trader in Guangzhou, offering RMB4,450/t (USD647/t) for angle steel Q235 50mm*50mm*5mm. "We kept decreasing prices to promote sales on Tuesday, but only sold 200t of the material at RMB4,450/t (USD647/t) and last sold 300t at RMB4,540/t (USD660/t) on Monday, while could sell 800t a day in the middle of February," added the trader. In the meantime, he disclosed that the EXW prices from steel mills in North China maintain at RMB4,170/t (USD606/t) right now, which means he suffers losses when the transportation fees are taken into consideration. Upon the dim market, the trader believes prices of section steel would go down again in the forthcoming several days.
Adopting pessimistic attitude towards the market prospect, the trader dares not supplement the inventory in quantities and just replenishes according to material shortage. Presently, he holds around 20,000t in stock. Based on the typical monthly sales volume of 14,000t, the trader estimates that the sales volume would reach 10,000t in April, down from 13,000t in March. He recorded the sales volume of approximately 33,000t in the first quarter of 2023, against 165,000t or so in 2022.
"Prices of steel billet decreased by about RMB70/t (USD10/t) to RMB3,830/t (USD557/t) in the past two days, together with the slow market, forcing us to move down prices of section steel," stated a trader in Shanghai. "Quoting RMB4,220/t (USD614/t) for H-beam steel Q235 200*200mm, we just received on inquiry and did not close any deals on Tuesday, and last sold 200t of the material at RMRB4,230/t (USD615/t) on Monday," added the trader. Meanwhile, he pointed out that end users strictly purchase according to orders for final products restricted by the downward price trend. The trader shows little confidence in the market prospect seeing the soft demand and remains cautious about supplementing inventories. At present, he holds around 4,000t of stocks, down from 5,000t in early March.
With the regular monthly sales volume of 7,000t, the trader would sell 5,000t in April, similar to March. He roughly sold 13,000t in the first quarter of 2023, against 60,000t or so in 2022.
"Prices of steel billet witnessed the total markdown of around RMB70/t (USD10/t) from last weekend to this Monday, and steel mills in Tangshan moved down prices in succession. Therefore, we deceased prices on Tuesday," noted a trader in Tianjin. Quoting RMB4,250/t (USD618/t) without concession for angle steel Q235 50mm*50mm*5mm, the trader did not close any deals on Tuesday, and last sold 200t of the material at RMB4,340/t (USD631/t) on Monday. In the meantime, the trader disclosed that the sudden price drop and the rain also weakened downstream customers' purchasing activities to some extent on Tuesday. Considering that the demand from downstream industries remains soft, the trader worries prices of section steel would edge down further in the coming several days.
Holding around 2,000t of stocks, the trader would sell 6,000t in April, identical to March. With the regular monthly sales volume of 10,000t, he recorded the sales volume of around 17,000t in the first quarter of 2023, against 63,000t more or less in 2022.
"It kept raining for around two weeks, which means it's hard for construction projects to operate, leading to the shrinking demand for section steel. Therefore, we have to move down prices of section steel when those of raw materials decreased," revealed a trader in Guangzhou, offering RMB4,450/t (USD647/t) for angle steel Q235 50mm*50mm*5mm. "We kept decreasing prices to promote sales on Tuesday, but only sold 200t of the material at RMB4,450/t (USD647/t) and last sold 300t at RMB4,540/t (USD660/t) on Monday, while could sell 800t a day in the middle of February," added the trader. In the meantime, he disclosed that the EXW prices from steel mills in North China maintain at RMB4,170/t (USD606/t) right now, which means he suffers losses when the transportation fees are taken into consideration. Upon the dim market, the trader believes prices of section steel would go down again in the forthcoming several days.
Adopting pessimistic attitude towards the market prospect, the trader dares not supplement the inventory in quantities and just replenishes according to material shortage. Presently, he holds around 20,000t in stock. Based on the typical monthly sales volume of 14,000t, the trader estimates that the sales volume would reach 10,000t in April, down from 13,000t in March. He recorded the sales volume of approximately 33,000t in the first quarter of 2023, against 165,000t or so in 2022.
"Prices of steel billet decreased by about RMB70/t (USD10/t) to RMB3,830/t (USD557/t) in the past two days, together with the slow market, forcing us to move down prices of section steel," stated a trader in Shanghai. "Quoting RMB4,220/t (USD614/t) for H-beam steel Q235 200*200mm, we just received on inquiry and did not close any deals on Tuesday, and last sold 200t of the material at RMRB4,230/t (USD615/t) on Monday," added the trader. Meanwhile, he pointed out that end users strictly purchase according to orders for final products restricted by the downward price trend. The trader shows little confidence in the market prospect seeing the soft demand and remains cautious about supplementing inventories. At present, he holds around 4,000t of stocks, down from 5,000t in early March.
With the regular monthly sales volume of 7,000t, the trader would sell 5,000t in April, similar to March. He roughly sold 13,000t in the first quarter of 2023, against 60,000t or so in 2022.
