Chinese plate product prices on the rise for 2 weeks
By Daniel at 17 June, 2009, 10:21 am
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Chinese steel prices have been riding piggy bank on a vibrant construction sector impacted by flowering of Stimulus package. Prices of long as well as flat has registered an impressive growth ranging from 6% in HRC going up to 11% in WRC during the last quarter. (Ref STT: Chinese Tango - Glimmer of revival appearing : dated 12/06/09)
The prices of HRC and plates have improved by 4% and 1% in the last couple of weeks after remaining dormant for a month.
Product Category 1-Jun 8-Jun 16-Jun Change %
HRC 4.75 mm 3450 3500 3580 4%
Plates 20 mm 3500 3450 3520 1%
Change is on June 16th, 2009 as compared to June 1st, 2009
Rate in CNY per tonne FOV
Inclusive of VAT
(Source - www.steelprices-china.com)
The genesis of this upswing in sentiments lies in a buoyed flat product market fuelled by hectic activity in construction and the automobile segment in the last quarter.
The momentum has been accentuated by a disappointing settlement of iron ore contract prices for 2009-10 with a merely 33% reduction from 2008 levels by Rio Tinto and BHP with Japanese and Korean buyers against a clamor for 45% reduction by Chinese buyers. This spurred traders in domestic steel market in China to grab more material in anticipation of a price hike by manufacturers weary of cost escalation.
Some medium and small mills reported that they had to raise their prices due to the relatively high costs of imported slab which has jumped by USD 30 per tonne to USD 50 per tonne from June to July from Ukrainian and Brazilian sources.
Although titan Baosteel has desisted from hiking plate prices on 12th June the tone has been set by an increase of CNY 100 per tonne to CNY 500 per tonne in other products for July bookings.
In Shanghai, prices of medium plate from first tier mills are up slightly to CNY 3,400 per tonne (USD 498 per tonne), while prices of second tier materials have climbed to the level of CNY 3,350 per tonne (USD 490 per tonne ). The indications are that there is room for a further increase in the prices of the second tier materials during the month.
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(Sourced from www. steelprices-china.com)
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