Chinese section steel market inactive
2023-04-27 08:18:37 [Print]
BEIJING (Asian Metal) 27 Apr 23 - The domestic section steel market runs slowly at the moment, and prices either keep narrowly flat or go down further, amid the pessimistic attitudes of participants. The current prevailing prices of angle steel Q235 50mm*50mm*5mm stand at RMB3,910/t (USD565/t) and RMB4,200/t (USD607/t) respectively in Tangshan and Guangzhou, with the former stable and the later down by RMB70/t (USD10/t) compared with Tuesday, and those of channel steel Q235 160*65*8.5mm hover at RMB4,190/t (USD605/t) in Shanghai, down by RMB30/t (USD4/t) from Tuesday. Insiders foresee nationwide price decline in the following several days upon the dim market.
"End users purchased actively on Tuesday when prices showed signs of rebounding, and we sold about 30,000t of angle steel Q235 50mm*50mm*5mm at RMB3,910/t (USD565/t), but they tended to hold back from purchasing on Wednesday and we just sold 10,000t, equivalent to the average daily sales volume of late last week when prices kept dropping, while we could sell 15,000t a day easily in the middle of the month," stated a producer in Tangshan, Hebei. According to him, the market is full of bearish atmosphere and most participants worry about a further price decrease. Besides, prices of raw materials such as iron ore, coal, coke and steel billet go down continuously. The producer adopts pessimistic attitude towards the market prospect and deems prices of section steel would decline in the forthcoming several days.
With an annual production capacity of 2.8 million tons, the mill runs all the five section steel production lines normally right now, and the output in April would achieve 230,000t, similar to March. The mill recorded the output of approximately 680,000t in the first quarter of 2023, against 2.8 million tons in 2022. It holds about 250,000t of inventories right now.
"The continuous rains slow down the operation of construction projects. Besides, the downward price trend of raw materials and section steel dampens downstream customers' purchasing activities. Traditionally, they should enlarge purchasing volumes before the Labor Day holiday (April 29- May 3), but they show little intention in purchasing now, believing prices of section steel would edge down further," revealed a trader in Guangzhou, who sold 300t of angle steel Q235 50mm*50mm*5mm at RMB4,200/t (USD607/t) on Wednesday and last sold 400t at RMB4,270/t (USD617/t) on Tuesday, while could sell 800t a day in early March. Taking the sluggish demand and the decreasing prices into consideration, he shows little confidence in the market prospect and remains cautious about replenishing inventories. "We strictly supplement the stocks according to grade shortage now," added the trader, deeming prices of section steel would go down further in the forthcoming several days.
Holding around 15,000t of stocks, down from 20,000t early this month, the trader would sell 10,000t in April, down from 13,000t in March. With the typical monthly sales volume of 14,000t, he roughly sold 33,000t in the first quarter of 2023 and 165,000t more or less in 2022.
"End users remain inactive in placing orders discouraged by the downward price trend. After tough negotiations, we just sold 100t of channel steel Q235 160*65*8.5mm at RMB4,190/t (USD605/t) on Wednesday, and last sold 200t of the material at RMB4,220/t (USD610/t) on Tuesday, while could sell 400t a day in the middle of the month," stated a trader in Shanghai. According to him, the continuous price declines of raw materials and section steel heightened downstream customers' cautious attitudes. In addition, the coming rainy season weakens end users' purchasing activities to some extent. "We found it hard to develop new customers and even regular clients postpone purchasing," added the trader, believing prices of section steel would decline again in the upcoming several days.
The trader estimates that the sales volume would achieve 8,000t in April, against 10,000t in March. With the regular sale volume of 12,000tpm, he recorded the sales volume of 28,000t or so from January to March of 2023 and 140,000t more or less in 2022, holding about 8,000t of stocks right now.
"End users purchased actively on Tuesday when prices showed signs of rebounding, and we sold about 30,000t of angle steel Q235 50mm*50mm*5mm at RMB3,910/t (USD565/t), but they tended to hold back from purchasing on Wednesday and we just sold 10,000t, equivalent to the average daily sales volume of late last week when prices kept dropping, while we could sell 15,000t a day easily in the middle of the month," stated a producer in Tangshan, Hebei. According to him, the market is full of bearish atmosphere and most participants worry about a further price decrease. Besides, prices of raw materials such as iron ore, coal, coke and steel billet go down continuously. The producer adopts pessimistic attitude towards the market prospect and deems prices of section steel would decline in the forthcoming several days.
With an annual production capacity of 2.8 million tons, the mill runs all the five section steel production lines normally right now, and the output in April would achieve 230,000t, similar to March. The mill recorded the output of approximately 680,000t in the first quarter of 2023, against 2.8 million tons in 2022. It holds about 250,000t of inventories right now.
"The continuous rains slow down the operation of construction projects. Besides, the downward price trend of raw materials and section steel dampens downstream customers' purchasing activities. Traditionally, they should enlarge purchasing volumes before the Labor Day holiday (April 29- May 3), but they show little intention in purchasing now, believing prices of section steel would edge down further," revealed a trader in Guangzhou, who sold 300t of angle steel Q235 50mm*50mm*5mm at RMB4,200/t (USD607/t) on Wednesday and last sold 400t at RMB4,270/t (USD617/t) on Tuesday, while could sell 800t a day in early March. Taking the sluggish demand and the decreasing prices into consideration, he shows little confidence in the market prospect and remains cautious about replenishing inventories. "We strictly supplement the stocks according to grade shortage now," added the trader, deeming prices of section steel would go down further in the forthcoming several days.
Holding around 15,000t of stocks, down from 20,000t early this month, the trader would sell 10,000t in April, down from 13,000t in March. With the typical monthly sales volume of 14,000t, he roughly sold 33,000t in the first quarter of 2023 and 165,000t more or less in 2022.
"End users remain inactive in placing orders discouraged by the downward price trend. After tough negotiations, we just sold 100t of channel steel Q235 160*65*8.5mm at RMB4,190/t (USD605/t) on Wednesday, and last sold 200t of the material at RMB4,220/t (USD610/t) on Tuesday, while could sell 400t a day in the middle of the month," stated a trader in Shanghai. According to him, the continuous price declines of raw materials and section steel heightened downstream customers' cautious attitudes. In addition, the coming rainy season weakens end users' purchasing activities to some extent. "We found it hard to develop new customers and even regular clients postpone purchasing," added the trader, believing prices of section steel would decline again in the upcoming several days.
The trader estimates that the sales volume would achieve 8,000t in April, against 10,000t in March. With the regular sale volume of 12,000tpm, he recorded the sales volume of 28,000t or so from January to March of 2023 and 140,000t more or less in 2022, holding about 8,000t of stocks right now.
