Chinese steel plate market weakens
2024-04-29 08:34:26 [Print]
BEIJING (Asian Metal) 29 Apr 24 - The domestic steel plate market runs slowly this week as end users hold back from purchasing again after the active purchase in the past two weeks, and prices fluctuate narrowly. The current mainstream prices of steel plate Q235B 14-25mm hover at RMB3,960/t (USD546/t), RMB3,840/t (USD530/t) and RMB4,000/t (USD552/t) D/P respectively in warehouses Shenyang, Shanghai and Guangzhou. Insiders foresee stable prices of steel plate in the following two days upon the arrival of the May Day holiday (May 1-5).
"The market calms down gradually with prices stabilizing after the spirally upward trend in the past two weeks. On Sunday, we just sold 100t of steel plate at RMB3,960/t (USD546/t) D/P, while sold 200-300t a day easily in the middle of April," noted a trader in Shenyang, Liaoning, quoting RMB3,960/t (USD546/t) for steel plate Q235B 14-25mm, and he last sold 150t at the same price last Friday. According to him, the demand form downstream industries remains soft, and end users tend to hold back from purchasing seeing prices of steel plate powerless to go up further. Given the quick delivery from steel mills, the trader expects for a price decline after the holiday but deems prices of steel plate would go on stable before the holiday with participants retreating from the market in succession.
Based on the typical monthly sales volume of 5,000t, the trader predicts to sell 4,500t of steel plate in April, against 3,000t in March. He recorded the sales volume of approximately 8,000t in the first three months of 2024 and 39,000t in 2023, holding around 2,000t in stock at present.
"The purchasing activities of end users reduce gradually as prices of steel plate fail to go up further. We just received three inquiries on Sunday and finally sold 200t of steel plate Q235B 14-25mm at RMB3,840/t (USD530/t) after tough negotiations on Monday, while averaged sold 30t a day last week," revealed a trader in Shanghai. In the meantime, the trader points out that end users refuse to enlarge stocks this week, believing prices of steel plate hard to edge up, while traditionally they expand inventories for the consumption during the May Day holiday. Adopting wait-and-see attitude towards the market prospect upon the arrival of the holiday, the trader plans to maintain prices of steel plate flat in the forthcoming several days.
Presently, the trader holds around 10,000t of stocks, up from 7,000t early this month. With the regular monthly sales volume of 5,000t, he estimates that the sales volume would achieve 5,000t in April, up from 4,000t in March. He roughly sold 51,000t of steel plate in 2023 and 11,000t in the first quarter of 2024.
"Dragged by the heavy rains, the demand from construction projects shrinks obviously. Besides, processing plants report insufficient orders for final products," stated a trader in Guangzhou, quoting RMB4,000/t (USD552/t) D/P without concession for steel plate Q235B 14-25mm, he sold 1,000t of the material on Sunday, and last sold 1,500t at the same price last Friday. According to him, nearby steel mills reduced supply discouraged by the losses and sales pressures in the past two months, and thus the market inventory remains low for the moment, restraining prices of steel plate from decreasing. Considering that downstream clients retreat from the market in succession for the May Day holiday, the trader foresees stable prices of steel plate in the upcoming several days.
Holding around 40,000t in inventory, the trader might sell 30,000t of steel plate in April, up from 20,000t in March. Based on the regular monthly sales volume of 40,000t, he recorded the sales volume of around 370,000t in 2023 and 70,000t in the first quarter of 2024.
"The market calms down gradually with prices stabilizing after the spirally upward trend in the past two weeks. On Sunday, we just sold 100t of steel plate at RMB3,960/t (USD546/t) D/P, while sold 200-300t a day easily in the middle of April," noted a trader in Shenyang, Liaoning, quoting RMB3,960/t (USD546/t) for steel plate Q235B 14-25mm, and he last sold 150t at the same price last Friday. According to him, the demand form downstream industries remains soft, and end users tend to hold back from purchasing seeing prices of steel plate powerless to go up further. Given the quick delivery from steel mills, the trader expects for a price decline after the holiday but deems prices of steel plate would go on stable before the holiday with participants retreating from the market in succession.
Based on the typical monthly sales volume of 5,000t, the trader predicts to sell 4,500t of steel plate in April, against 3,000t in March. He recorded the sales volume of approximately 8,000t in the first three months of 2024 and 39,000t in 2023, holding around 2,000t in stock at present.
"The purchasing activities of end users reduce gradually as prices of steel plate fail to go up further. We just received three inquiries on Sunday and finally sold 200t of steel plate Q235B 14-25mm at RMB3,840/t (USD530/t) after tough negotiations on Monday, while averaged sold 30t a day last week," revealed a trader in Shanghai. In the meantime, the trader points out that end users refuse to enlarge stocks this week, believing prices of steel plate hard to edge up, while traditionally they expand inventories for the consumption during the May Day holiday. Adopting wait-and-see attitude towards the market prospect upon the arrival of the holiday, the trader plans to maintain prices of steel plate flat in the forthcoming several days.
Presently, the trader holds around 10,000t of stocks, up from 7,000t early this month. With the regular monthly sales volume of 5,000t, he estimates that the sales volume would achieve 5,000t in April, up from 4,000t in March. He roughly sold 51,000t of steel plate in 2023 and 11,000t in the first quarter of 2024.
"Dragged by the heavy rains, the demand from construction projects shrinks obviously. Besides, processing plants report insufficient orders for final products," stated a trader in Guangzhou, quoting RMB4,000/t (USD552/t) D/P without concession for steel plate Q235B 14-25mm, he sold 1,000t of the material on Sunday, and last sold 1,500t at the same price last Friday. According to him, nearby steel mills reduced supply discouraged by the losses and sales pressures in the past two months, and thus the market inventory remains low for the moment, restraining prices of steel plate from decreasing. Considering that downstream clients retreat from the market in succession for the May Day holiday, the trader foresees stable prices of steel plate in the upcoming several days.
Holding around 40,000t in inventory, the trader might sell 30,000t of steel plate in April, up from 20,000t in March. Based on the regular monthly sales volume of 40,000t, he recorded the sales volume of around 370,000t in 2023 and 70,000t in the first quarter of 2024.
