Chinese HRC prices edge down
2023-04-11 08:25:37 [Print]
BEIJING (Asian Metal) 11 Apr 23 - Discouraged by the poor sales performance, domestic HRC traders decreased prices on Monday. The current prevailing prices of HRC Q235B 5.75mm*1,500mm*C hover at RMB4,160/t (USD605/t), RMB4,220/t (USD614/t) and RMB4,150/t (USD603/t) D/P respectively in warehouses Tangshan, Shanghai and Shenyang, down by RMB40/t (USD6/t), RMB10/t (USD1.5/t) and RMB30/t (USD4/t) from the last trading day. Insiders foresee stable prices of HRC in the coming several days seeing the watchful atmosphere in the market.
"Restricted by the continuous price declines, end users remain inactive in placing orders. We just sold 300t of HRC Q235B 5.75mm*1,500mm*C at RMB4,200/t (USD611/t) last Sunday, and thus moved down prices to RMB4,160/t (USD605/t) on Monday," noted a trader in Tangshan, Hebei. According to him, though the demand from downstream industries keeps improving, end users strictly purchase from hand to mouth, with wait-and-see attitudes. "The sales performance improved a little on Monday, and we totally about 800t at RMB4,160/t (USD605/t)," added the trader. Considering that steel mills tend to maintain prices firm, he does not plan to move down prices further and predicts flat prices of HRC in the coming several days.
With the typical monthly sales volume of 18,000t, the trader might sell 15,000t in April, identical to March. He roughly sold 48,000t in the first quarter of 2023 and 187,000t in 2022. Presently, the trader holds around 11,000t of stocks.
"The demand from downstream industries remains soft. Previously, the delivery date from processing plants remains at above 4 days, but now, clients could get materials within 3 days. To promote sales, we decreased prices to RMB4,230/t (USD615/t) and just sold 30t of HRC Q235B 5.75mm*1,500mm*C at RMB4,220/t (USD614/t) on Monday, while last sold 120t at RMB4,230/t (USD615/t) last Friday, " disclosed a trader in Shanghai. In the meantime, he pointed out that the downward price trend weakened end users' purchasing activities to some extent. Nevertheless, given the firm prices of raw materials, the trader believes prices of HRC might stabilize in the forthcoming several days.
Holding around 1,000t of stocks, the trader estimates that the sales volume would reach 1,200t in April, down from 1,300t in March. He recorded the sales volume of around 3,600t in the first quarter of 2023 and 14,500t more or less in 2022.
"We moved down prices following those in other regions on Monday. The demand from downstream industries remains soft, and we just sold 80t of HRC Q235B 5.75mm*1,500mm*C at RMB4,150/t (USD603/t) when offering RMB4,170/t (USD606/t) on Monday, while refused to sell at prices below RMB4,180/t (USD608/t) last Friday," revealed a trader in Shenyang, Liaoning. According to him, end users turned to active in purchasing when prices rebounded last Friday, but held back from placing orders this Monday when prices fell. Adopting wait-and-see attitude towards the market prospect, he endeavors to reduce stocks and just holds 3,000t of inventories now, against the normal level of 4,000t. The trader prefers to maintain prices flat rather than cut them down again in the coming several days, believing even a further price drop hard to boost the market.
With the regular trading volume of 5,200t, the trader estimates that the sales volume would reach 4,000t in April, down from 6,000t in March. He roughly sold 15,000t in the first quarter of 2023, against 62,000t or so in 2022.
"Restricted by the continuous price declines, end users remain inactive in placing orders. We just sold 300t of HRC Q235B 5.75mm*1,500mm*C at RMB4,200/t (USD611/t) last Sunday, and thus moved down prices to RMB4,160/t (USD605/t) on Monday," noted a trader in Tangshan, Hebei. According to him, though the demand from downstream industries keeps improving, end users strictly purchase from hand to mouth, with wait-and-see attitudes. "The sales performance improved a little on Monday, and we totally about 800t at RMB4,160/t (USD605/t)," added the trader. Considering that steel mills tend to maintain prices firm, he does not plan to move down prices further and predicts flat prices of HRC in the coming several days.
With the typical monthly sales volume of 18,000t, the trader might sell 15,000t in April, identical to March. He roughly sold 48,000t in the first quarter of 2023 and 187,000t in 2022. Presently, the trader holds around 11,000t of stocks.
"The demand from downstream industries remains soft. Previously, the delivery date from processing plants remains at above 4 days, but now, clients could get materials within 3 days. To promote sales, we decreased prices to RMB4,230/t (USD615/t) and just sold 30t of HRC Q235B 5.75mm*1,500mm*C at RMB4,220/t (USD614/t) on Monday, while last sold 120t at RMB4,230/t (USD615/t) last Friday, " disclosed a trader in Shanghai. In the meantime, he pointed out that the downward price trend weakened end users' purchasing activities to some extent. Nevertheless, given the firm prices of raw materials, the trader believes prices of HRC might stabilize in the forthcoming several days.
Holding around 1,000t of stocks, the trader estimates that the sales volume would reach 1,200t in April, down from 1,300t in March. He recorded the sales volume of around 3,600t in the first quarter of 2023 and 14,500t more or less in 2022.
"We moved down prices following those in other regions on Monday. The demand from downstream industries remains soft, and we just sold 80t of HRC Q235B 5.75mm*1,500mm*C at RMB4,150/t (USD603/t) when offering RMB4,170/t (USD606/t) on Monday, while refused to sell at prices below RMB4,180/t (USD608/t) last Friday," revealed a trader in Shenyang, Liaoning. According to him, end users turned to active in purchasing when prices rebounded last Friday, but held back from placing orders this Monday when prices fell. Adopting wait-and-see attitude towards the market prospect, he endeavors to reduce stocks and just holds 3,000t of inventories now, against the normal level of 4,000t. The trader prefers to maintain prices flat rather than cut them down again in the coming several days, believing even a further price drop hard to boost the market.
With the regular trading volume of 5,200t, the trader estimates that the sales volume would reach 4,000t in April, down from 6,000t in March. He roughly sold 15,000t in the first quarter of 2023, against 62,000t or so in 2022.
