Chinese section steel prices decrease
2023-04-21 08:13:24 [Print]
BEIJING (Asian Metal) 21 Apr 23 - Domestic section steel traders moved down prices further on Thursday after the down-up trend in the past several days, and the market preformed inactively. Presently, the mainstream prices of channel steel Q235 160*65*8.5mm, angle steel Q235 50mm*50mm*5mm and H-beam steel Q235 200*200mm stand at RMB4,150/t (USD602/t), RMB4,350/t (USD632/t) and RMB4,160/t (USD604/t) D/P respectively in Tianjin, Guangzhou and Shanghai, down by RMB50/t (USD7/t), RMB60/t (USD8/t) and RMB40/t (USD6/t) from Wednesday. Insiders foresee decreasing prices in the coming several days in view of the sluggish demand.
"Prices of steel billet declined by RMB20/t (USD3/t) to RMB3,740/t (USD543/t) on late Wednesday, and steel mills in Tangshan moved down section steel EXW prices by RMB30/t (USD4/t) on Thursday, forcing us to cut prices," noted a trader in Tianjin, offering RMB4,150/t (USD602/t) for channel steel Q235 160*65*8.5mm, while he refused to sell at prices below RMB4,200/t (USD610/t) on Wednesday. According to him, the demand from downstream industries remains soft and shows no signs of improving dragged by the cautious purchasing attitudes of end users, though April acts as the traditional peak season for construction projects. Besides, the continuous price declines of raw materials dampen the confidence of market participants. The trader just sold 100t of the material at RMB4,150/t (USD602/t) on Thursday and last sold 200t at RMB4,200/t (USD610/t) on Wednesday. Taking the low purchasing activities of end users into consideration, he worries prices of section steel would go down further in the forthcoming several days.
With the typical monthly sales volume of 10,000t, the trader might sell 6,000t in April, similar to March. He roughly sold 17,000t in the first quarter of 2023 and 63,000t in 2022, holding approximately 2,000t in inventory for the moment.
"We have to cut prices in succession discouraged by the prices decline from steel mills in North China and the poor sales performance," complained a trader in Guangzhou. Quoting RMB4,350/t (USD632/t) for angle steel Q235 50mm*50mm*5mm, he insisted on RMB4,410/t (USD640/t) on Wednesday. According to him, the continuous rains drag down the progress of construction projects, leading to the shrinking demand for section steel. Besides, the downward price trend of major steel projects weakens the confidence of market participants. "We contacted with several clients on Thursday, and all of them tended to separate purchasing volumes, believing prices would edge down further. Finally, we sold 500t of the material at RMB4,350/t (USD632/t), while could sell 1,000t a day easily in early March," added the trader, predicting prices of section steel would decline again in the forthcoming several days in view of the slow market.
Adopting pessimistic attitude towards the market prospect, the trader remains inactive in supplementing inventories and just holds about 30,000t of stocks at the moment, down from 40,000t in late March. Based on the typical sales volume of 40,000tpm, the trader would sell 17,000t in April, down from 30,000t in March. He recorded the sales volume of approximately 58,000t in the first quarter of 2023 and 365,000t in 2022.
"The decreasing prices of steel billet and those from steel mills forced us to move down prices on Thursday after the slight rebound on Tuesday. Given the steady demand, we do not expect for a price hike, and prices of section steel would go down slightly in the following several days seeing the bearish atmosphere in the market," revealed a trader in Shanghai. Quoting RMB4,160/t (USD604/t) without concession for H-beam steel Q235 200*200mm, the trader disclosed that end users postponed purchasing on Thursday seeing the price drop and he just sold 100t of the material, while last sold 300t at RMB4,200/t (USD610/t) on Tuesday when prices rebounded. His stocks increased to 6,000t this week from 4,000t in late March due to the poor sales performance.
Based on the regular monthly sales volume of 7,000t, the trader estimates that the sales volume would reach 5,000t in April, the same with March. He recorded the sales volume of around 13,000t in the first quarter of 2023, against 60,000t more or less in 2022.
"Prices of steel billet declined by RMB20/t (USD3/t) to RMB3,740/t (USD543/t) on late Wednesday, and steel mills in Tangshan moved down section steel EXW prices by RMB30/t (USD4/t) on Thursday, forcing us to cut prices," noted a trader in Tianjin, offering RMB4,150/t (USD602/t) for channel steel Q235 160*65*8.5mm, while he refused to sell at prices below RMB4,200/t (USD610/t) on Wednesday. According to him, the demand from downstream industries remains soft and shows no signs of improving dragged by the cautious purchasing attitudes of end users, though April acts as the traditional peak season for construction projects. Besides, the continuous price declines of raw materials dampen the confidence of market participants. The trader just sold 100t of the material at RMB4,150/t (USD602/t) on Thursday and last sold 200t at RMB4,200/t (USD610/t) on Wednesday. Taking the low purchasing activities of end users into consideration, he worries prices of section steel would go down further in the forthcoming several days.
With the typical monthly sales volume of 10,000t, the trader might sell 6,000t in April, similar to March. He roughly sold 17,000t in the first quarter of 2023 and 63,000t in 2022, holding approximately 2,000t in inventory for the moment.
"We have to cut prices in succession discouraged by the prices decline from steel mills in North China and the poor sales performance," complained a trader in Guangzhou. Quoting RMB4,350/t (USD632/t) for angle steel Q235 50mm*50mm*5mm, he insisted on RMB4,410/t (USD640/t) on Wednesday. According to him, the continuous rains drag down the progress of construction projects, leading to the shrinking demand for section steel. Besides, the downward price trend of major steel projects weakens the confidence of market participants. "We contacted with several clients on Thursday, and all of them tended to separate purchasing volumes, believing prices would edge down further. Finally, we sold 500t of the material at RMB4,350/t (USD632/t), while could sell 1,000t a day easily in early March," added the trader, predicting prices of section steel would decline again in the forthcoming several days in view of the slow market.
Adopting pessimistic attitude towards the market prospect, the trader remains inactive in supplementing inventories and just holds about 30,000t of stocks at the moment, down from 40,000t in late March. Based on the typical sales volume of 40,000tpm, the trader would sell 17,000t in April, down from 30,000t in March. He recorded the sales volume of approximately 58,000t in the first quarter of 2023 and 365,000t in 2022.
"The decreasing prices of steel billet and those from steel mills forced us to move down prices on Thursday after the slight rebound on Tuesday. Given the steady demand, we do not expect for a price hike, and prices of section steel would go down slightly in the following several days seeing the bearish atmosphere in the market," revealed a trader in Shanghai. Quoting RMB4,160/t (USD604/t) without concession for H-beam steel Q235 200*200mm, the trader disclosed that end users postponed purchasing on Thursday seeing the price drop and he just sold 100t of the material, while last sold 300t at RMB4,200/t (USD610/t) on Tuesday when prices rebounded. His stocks increased to 6,000t this week from 4,000t in late March due to the poor sales performance.
Based on the regular monthly sales volume of 7,000t, the trader estimates that the sales volume would reach 5,000t in April, the same with March. He recorded the sales volume of around 13,000t in the first quarter of 2023, against 60,000t more or less in 2022.
