Chinese HRC traders watch the market
2023-04-18 08:32:38 [Print]
BEIJING (Asian Metal) 18 Apr 23 - Domestic HRC traders adopt wait-and-see attitudes towards the market prospect at the moment, and the market runs slowly. The current mainstream prices of HRC Q235B 5.75mm*1,500mm*C stand at RMB4,150/t (USD604/t), RMB4,180/t (USD608/t) and RMB4,100/t (USD597/t) D/P respectively in warehouses Tianjin, Guangzhou and Shenyang, with the former two down by RMB10/t (USD1.5/t) and the latter one stable compared with the last trading day. Insiders foresee slight price decrease in the coming several days upon the dim market.
"The sentiments of market participants calmed down again this Monday after the short-term boom last Friday, and we had to provide discounts to promote sales," disclosed a trader in Tianjin. Quoting RMB4,160/t (USD605/t) for HRC Q235B 5.75mm*1,500mm*C, he could accept RMB4,150/t (USD604/t) for firm orders, while last sold 400t at RMB4,160/t (USD605/t) last Friday. Upon the decreasing prices of raw materials and losses, the trader holds wait-and-see attitude towards the market prospect. "Actually, the demand from downstream industries keeps improving, but end users remain inactive in placing orders seeing the frequent price changes," added the trader, who sold 100t of the material at RMB4,150/t (USD604/t) on Monday. The trader worries prices of HRC might edge down slightly in the coming several days seeing the low purchasing actives of end users.
Holding around 8,000t in stock, the trader estimates that the sales volume would reach 7,000t in April, similar to March. Based on the regular sales volume of 10,000t, he roughly sold 15,000t in the first quarter of 2023, against 57,000t or so in 2022.
"End users held back from purchasing when prices decreased on Monday, while they bought actively last Friday when prices rose. We sold about 1,500t of HRC Q235B 5.75mm*1,500mm*C at RMB4,190/t (USD610/t) last Friday, while just sold 500t at RMB4,180/t (USD608/t) on Monday," disclosed a trader in Guangzhou. Adopting wait-and-see attitude towards the market seeing the steady demand from downstream industries but the decreasing prices of raw materials, the trader deems prices of HRC would go down further in the coming several days in view of the poor sales performance. "The continuous rains restrain the demand from improving," added the trader.
Presently, the trader holds around 6,000t of inventories. With the typical monthly sales volume of 15,000t, the trader might sell 13,000t in April, similar to March. He recorded the sales volume of around 27,000t in the first quarter of 2023, against 116,000t or so in 2022.
Adopting wait-and-see attitude towards the market prospect, a trader in Shenyang, Liaoning remains inactive in supplementing inventories and just holds around 1,600t of stocks right now, down from 2,500t in early March. "We suffer losses by RMB50-80/t (USD7-12/t) for the moment, and thus remain not in a hurry to sell. Besides, the demand from downstream industries remains soft," added the trader, quoting RMB4,100/t (USD597/t) for HRC Q235B 5.75mm*1,500mm*C. He did not close any deals on Monday. According to him, end users kept cautious about purchasing seeing the decreasing prices of both HRC and raw materials. Upon the low purchasing activities of downstream customers, the trader worries prices of HRC would decline slightly in the upcoming several days.
With the typical monthly sales volume of 4,000t, the trader would sell 3,000t in April, down from 3,500t in March. He roughly sold 9,000t in the first quarter of 2023 and 32,500t in 2022.
"The sentiments of market participants calmed down again this Monday after the short-term boom last Friday, and we had to provide discounts to promote sales," disclosed a trader in Tianjin. Quoting RMB4,160/t (USD605/t) for HRC Q235B 5.75mm*1,500mm*C, he could accept RMB4,150/t (USD604/t) for firm orders, while last sold 400t at RMB4,160/t (USD605/t) last Friday. Upon the decreasing prices of raw materials and losses, the trader holds wait-and-see attitude towards the market prospect. "Actually, the demand from downstream industries keeps improving, but end users remain inactive in placing orders seeing the frequent price changes," added the trader, who sold 100t of the material at RMB4,150/t (USD604/t) on Monday. The trader worries prices of HRC might edge down slightly in the coming several days seeing the low purchasing actives of end users.
Holding around 8,000t in stock, the trader estimates that the sales volume would reach 7,000t in April, similar to March. Based on the regular sales volume of 10,000t, he roughly sold 15,000t in the first quarter of 2023, against 57,000t or so in 2022.
"End users held back from purchasing when prices decreased on Monday, while they bought actively last Friday when prices rose. We sold about 1,500t of HRC Q235B 5.75mm*1,500mm*C at RMB4,190/t (USD610/t) last Friday, while just sold 500t at RMB4,180/t (USD608/t) on Monday," disclosed a trader in Guangzhou. Adopting wait-and-see attitude towards the market seeing the steady demand from downstream industries but the decreasing prices of raw materials, the trader deems prices of HRC would go down further in the coming several days in view of the poor sales performance. "The continuous rains restrain the demand from improving," added the trader.
Presently, the trader holds around 6,000t of inventories. With the typical monthly sales volume of 15,000t, the trader might sell 13,000t in April, similar to March. He recorded the sales volume of around 27,000t in the first quarter of 2023, against 116,000t or so in 2022.
Adopting wait-and-see attitude towards the market prospect, a trader in Shenyang, Liaoning remains inactive in supplementing inventories and just holds around 1,600t of stocks right now, down from 2,500t in early March. "We suffer losses by RMB50-80/t (USD7-12/t) for the moment, and thus remain not in a hurry to sell. Besides, the demand from downstream industries remains soft," added the trader, quoting RMB4,100/t (USD597/t) for HRC Q235B 5.75mm*1,500mm*C. He did not close any deals on Monday. According to him, end users kept cautious about purchasing seeing the decreasing prices of both HRC and raw materials. Upon the low purchasing activities of downstream customers, the trader worries prices of HRC would decline slightly in the upcoming several days.
With the typical monthly sales volume of 4,000t, the trader would sell 3,000t in April, down from 3,500t in March. He roughly sold 9,000t in the first quarter of 2023 and 32,500t in 2022.
