Chinese section steel market unlikely to recover
2012-09-14 10:00:50 [Print]
BEIJING (Asian Metal) 14 Sep 12 - Chinese domestic section steel market continues to be inactive and prices in Tianjin and Foshan, Guangdong Province see the downward trend. Insiders suppose that the market will keep running slowly in following several days.
North China: A sales representative from Lifengying Trading in Tianjin informed that prices of angel steel Q23550mm*50mm*5mm from Renyi Steel and channel steel Q235 160mm*65mm*8.5mm from Jiangtian Steel are RMB3,450/t and RMB3,250/t (Net weight and VAT included) respectively, with the later falling by RMB70/t compared with that of the last trading day while the former unchanged.
The source informs that Jiangtian lowered list prices of channel steel and I-beam steel by RMB100/t on September 13, so he also moved down the quotations accordingly. According to him, most downstream customers are reluctant to place orders and sometimes he can’t even receive any orders for the whole day. Currently, he only holds a low stock of 1,000-2,000t to avoid potential losses.
East China: A sales manager from Hongyun Trading in Shanghai reported that prices of angle steel Q235 50mm*50mm*5mm and channel steel Q235 160mm*65mm*8.5mm from Masteel are the same at RMB3,580/t (Theoretical weight and VAT included), stable compared with those of the last trading day.
The source tells that though the price of steel billet has been fluctuating greatly for several days, he has kept the quotations unchanged during this period. According to him, it is wise to take a cautious attitude when the market condition is still unclear. Currently, he only holds a stock of less than 2,000t against the target level of 5,000t to avoid risks. The source forecasts a slow market in the near future.
South China: A sales officer from Haiheng Trading in Foshan, Guangdong Province reported that prices of angle steel Q235 50mm*50mm*5mm and channel steel Q235 160mm*65mm*8.5mm from steel mills in Tangshan, Hebei Province are the same at RMB3,730/t (Net weight and VAT included) separately, both falling by RMB50/t compared with those of the last trading day.
The source moved up offers by RMB100/t on September 10, but he has to lower them again seeing lower prices of raw materials. He tells that the price of steel billet Q235 150mm*150mm fell by RMB110/t in the past two days. In addition, Laiwu Steel lowered ex-works prices of channel steel and I-beam steel by RMB100-140/t on September 12, with that of I-beam steel Q235 250mm*118mm*10mm at RMB3,400/t (VAT included). Under a condition like this, some local traders moved down offers, while others who keep prices unchanged will offer some discounts when deals are made. As the demand from downstream industries is unlikely to rebound within a short period, the source is pessimistic about the coming market.
Southwest China: A sales representative from Gangrong Trading in Chengdu, Sichuan Province disclosed that prices of angle steel Q235 50mm*50mm*5mm from Anyang Steel and I-beam steel Q235 250mm*118mm*10mm from Rizhao Steel are RMB3,830/t and RMB3,850/t (Theoretical weight and VAT included) respectively, the same as those of the last trading day.
The source reports that in view of unpromising market performance, steel mills are cutting outputs and some of them even halted production lines for equipment maintenance. Therefore, prices of raw materials are also falling with the shrinking demand. Take the price of iron ore fine EXW Chaoyang China for example, it fell by RMB20/t in the past two days. With a sales volume of 100tpd against the target one of 300-400tpd, the source is unconfident of the coming market.
