Thai HRC market quiet
2024-04-18 08:32:55 [Print]
BEIJING (Asian Metal) 18 Apr 24 - Though the Songkran Festival came to an end on Wednesday, lots of end users did not come back, and the HRC market ran slowly in Thailand. Presently, the prevailing prices of HRC SS400 3.0mm*1,500mm hover at THB23,000-24,000/t (USD623-650/t) D/P in warehouse Bangkok, in line with late last week. Insiders foresee narrowly stable prices in the following several days upon the watchful atmosphere in the market.
"We tried to contact several regular clients on Wednesday, the first working day after the 7-day Songkran Festival holiday, but they either have not returned to the market yet or showed little intention in placing orders. We believe the market unlikely to recover before next Monday," complained a local trader, who did not conclude any deals on Wednesday, and last sold 60t of HRC SS400 3.0mm*1,500mm at THB23,400/t (USD634/t) early last week. In the meantime, the trader disclosed that the frequent price fluctuations in China also weaken the purchasing enthusiasms of local end users to some degree. Adopting wait-and-see attitude towards the market prospect, the trader does not plan to adjust prices and forecasts flat prices of HRC in the forthcoming several days.
Holding around 2,000t in stock, the trader might sell 1,700t of HRC in April, against 2,100t in March. With the regular monthly sales volume of 2,100t, he recorded the sales volume of more or less 25,400t in 2023 and 7,300t in the first quarter of 2024.
Another local trader confirms the stagnant market right after the Songkran Festival. "We received several inquiries on Wednesday, but clients refused to negotiate further after getting the offers. We did not close any deals on Wednesday, and last sold 100t of HRC at THB23,500/t (USD637/t) before the holiday," noted the trader, offering THB23,500/t (USD637/t) D/P without concession for HRC SS400 3.0mm*1,500mm right now. In the meantime, he points out that the demand from downstream industries improves gradually with the anticipation for the new budget from the government in May. However, end users tend to separate purchasing volumes to avoid potential risks, deeming prices of HRC would drop to below THB23,000/t (USD623/t) before the end of April. Upon the rising production costs from steel mills due to the depreciation of Thai Baht but the low purchasing activities of end users, the trader believes prices of HRC would go on stable in the upcoming several days.
Based on the typical sales volume of 2,500tpm, the trader predicts to sell approximately 800t in April, down from 1,000t in March. He roughly sold 5,000t of HRC in the first quarter of 2024 and 20,600t in 2023, without any stocks for the moment.
"We tried to contact several regular clients on Wednesday, the first working day after the 7-day Songkran Festival holiday, but they either have not returned to the market yet or showed little intention in placing orders. We believe the market unlikely to recover before next Monday," complained a local trader, who did not conclude any deals on Wednesday, and last sold 60t of HRC SS400 3.0mm*1,500mm at THB23,400/t (USD634/t) early last week. In the meantime, the trader disclosed that the frequent price fluctuations in China also weaken the purchasing enthusiasms of local end users to some degree. Adopting wait-and-see attitude towards the market prospect, the trader does not plan to adjust prices and forecasts flat prices of HRC in the forthcoming several days.
Holding around 2,000t in stock, the trader might sell 1,700t of HRC in April, against 2,100t in March. With the regular monthly sales volume of 2,100t, he recorded the sales volume of more or less 25,400t in 2023 and 7,300t in the first quarter of 2024.
Another local trader confirms the stagnant market right after the Songkran Festival. "We received several inquiries on Wednesday, but clients refused to negotiate further after getting the offers. We did not close any deals on Wednesday, and last sold 100t of HRC at THB23,500/t (USD637/t) before the holiday," noted the trader, offering THB23,500/t (USD637/t) D/P without concession for HRC SS400 3.0mm*1,500mm right now. In the meantime, he points out that the demand from downstream industries improves gradually with the anticipation for the new budget from the government in May. However, end users tend to separate purchasing volumes to avoid potential risks, deeming prices of HRC would drop to below THB23,000/t (USD623/t) before the end of April. Upon the rising production costs from steel mills due to the depreciation of Thai Baht but the low purchasing activities of end users, the trader believes prices of HRC would go on stable in the upcoming several days.
Based on the typical sales volume of 2,500tpm, the trader predicts to sell approximately 800t in April, down from 1,000t in March. He roughly sold 5,000t of HRC in the first quarter of 2024 and 20,600t in 2023, without any stocks for the moment.
