Chinese HRC prices soften
2024-04-23 08:33:20 [Print]
BEIJING (Asian Metal) 23 Apr 24 - The domestic HRC market weakens this week as end users hold back from purchasing after the active purchase in the past two weeks, and the sentiments of participants calm down gradually. Traders either move down prices slightly or maintain prices flat temporarily. Presently, the mainstream prices of HRC Q235B 5.75mm*1,500mm*C stand at RMB3,790/t (USD523/t), RMB3,820/t (USD527/t), and RMB3,880/t (USD536/t) D/P respectively in warehouses Shenyang, Tianjin and Shanghai, with the former one down by RMB10/t (USD1.4/t) and the latter two stable compared with last Friday. Insiders foresee slight price decline in the following several days upon the slow market.
"Dragged by the inactive market, we cut prices of HRC slightly by RMB10/t (USD1.4/t) last weekend, but maintained prices stable supported by the low stocks on Monday," revealed a trader in Shenyang, Liaoning, quoting RMB3,790/t (USD523/t) D/P for HRC Q235B 5.75mm*1,500mm*C at present, while refused to sell at prices below RMB3,800/t (USD525/t) last Friday. He just sold 100t of the material on Monday, and last sold 200t last Friday. According to him, the demand from downstream industries remains soft and improves slowly, and end users keep cautious about purchasing seeing the quick price increase in the past two weeks. However, as nearby steel mills cut production, the supply reduces, which may restrain prices from dropping obviously before the May Day holiday (May 1-5). Adopting wait-and-see attitude towards the market prospect, the trader forecasts slight price decrease of RMB10-20/t (USD1.4-2.8/t) in the forthcoming several days.
Presently, the trader holds approximately 2,800t of stocks, against 3,500t early this month. Based on the regular monthly sales volume of 5,000t, he might sell 4,000t in April, up from 3,000t in March. The trader sold 59,000t of HRC in 2023 and 7,000t in the first quarter of 2024.
A trader in Tianjin quotes RMB3,820/t (USD527/t) D/P for HRC Q235B 5.75mm*1,500mm*C right now, while offered RMB3,840/t (USD530/t) with the concession of RMB20/t (USD2.8/t) last Friday. According to him, end users tend to hold back from purchasing this week seeing the price decline in the futures market, and the market calms down gradually. Besides, the demand from downstream industries remains insufficient. "Actually, most deals were concluded between traders last week, and orders from end users remained insufficient," added the trader, who just sold 50t of the material at RMB3,820/t (USD527/t) on Monday and last sold 200t at the same price last Friday. He deems prices of HRC might decrease slightly in the forthcoming several days upon the low purchasing activities of downstream clients.
Holding about 1,000t in inventory, the trader predicts to sell 6,000t of HRC in April, up from 5,000t in March. Based on the typical sales volume of 10,000tpm, he roughly sold 12,000t of HRC in the first three months of 2024 and 67,000t in 2023.
A trader in Shanghai confirms the slow market. "The projects operate in low rates, and the demand remains soft. Besides, end users keep cautious about purchasing upon the quick price rise in the past two weeks," noted the trader. Offering RMB3,880/t (USD536/t) D/P for HRC Q235B 5.75mm*1,500mm*C, the trader just sold 300t of the material on Monday, while last sold 1,000t last Friday. According to him, the price rebounds of raw materials stimulate steel mills to lift ex-works prices of HRC. However, end users show resistance to the rising prices when the insufficient orders for final products are taken into consideration. The trader shows little confidence in the market prospect and believes prices of HRC would go down slightly in the forthcoming several days.
With the regular monthly sales volume of 30,000t, the trader might sell 28,000t of HRC in April, up from 25,000t in March. He recorded the sales volume of around 50,000t in the first quarter of 2024 and 240,000t in 2023, holding around 10,000t in inventory for the moment.
"Dragged by the inactive market, we cut prices of HRC slightly by RMB10/t (USD1.4/t) last weekend, but maintained prices stable supported by the low stocks on Monday," revealed a trader in Shenyang, Liaoning, quoting RMB3,790/t (USD523/t) D/P for HRC Q235B 5.75mm*1,500mm*C at present, while refused to sell at prices below RMB3,800/t (USD525/t) last Friday. He just sold 100t of the material on Monday, and last sold 200t last Friday. According to him, the demand from downstream industries remains soft and improves slowly, and end users keep cautious about purchasing seeing the quick price increase in the past two weeks. However, as nearby steel mills cut production, the supply reduces, which may restrain prices from dropping obviously before the May Day holiday (May 1-5). Adopting wait-and-see attitude towards the market prospect, the trader forecasts slight price decrease of RMB10-20/t (USD1.4-2.8/t) in the forthcoming several days.
Presently, the trader holds approximately 2,800t of stocks, against 3,500t early this month. Based on the regular monthly sales volume of 5,000t, he might sell 4,000t in April, up from 3,000t in March. The trader sold 59,000t of HRC in 2023 and 7,000t in the first quarter of 2024.
A trader in Tianjin quotes RMB3,820/t (USD527/t) D/P for HRC Q235B 5.75mm*1,500mm*C right now, while offered RMB3,840/t (USD530/t) with the concession of RMB20/t (USD2.8/t) last Friday. According to him, end users tend to hold back from purchasing this week seeing the price decline in the futures market, and the market calms down gradually. Besides, the demand from downstream industries remains insufficient. "Actually, most deals were concluded between traders last week, and orders from end users remained insufficient," added the trader, who just sold 50t of the material at RMB3,820/t (USD527/t) on Monday and last sold 200t at the same price last Friday. He deems prices of HRC might decrease slightly in the forthcoming several days upon the low purchasing activities of downstream clients.
Holding about 1,000t in inventory, the trader predicts to sell 6,000t of HRC in April, up from 5,000t in March. Based on the typical sales volume of 10,000tpm, he roughly sold 12,000t of HRC in the first three months of 2024 and 67,000t in 2023.
A trader in Shanghai confirms the slow market. "The projects operate in low rates, and the demand remains soft. Besides, end users keep cautious about purchasing upon the quick price rise in the past two weeks," noted the trader. Offering RMB3,880/t (USD536/t) D/P for HRC Q235B 5.75mm*1,500mm*C, the trader just sold 300t of the material on Monday, while last sold 1,000t last Friday. According to him, the price rebounds of raw materials stimulate steel mills to lift ex-works prices of HRC. However, end users show resistance to the rising prices when the insufficient orders for final products are taken into consideration. The trader shows little confidence in the market prospect and believes prices of HRC would go down slightly in the forthcoming several days.
With the regular monthly sales volume of 30,000t, the trader might sell 28,000t of HRC in April, up from 25,000t in March. He recorded the sales volume of around 50,000t in the first quarter of 2024 and 240,000t in 2023, holding around 10,000t in inventory for the moment.
