Flat steel to vibrate in China amid weak performance later this year
Last week, domestic steel market edged down slightly as a whole with few market transactions. Social inventory began to increase, weakening the market confidence. Among them, flats price is relatively stronger than that of construction steel. Price of HRC and medium plate in key cities endured ups and downs while HRC in most areas remained stable.
Mr Wang Jinsheng vice chairman of Tianjin Association of Metal Material Trade, pointed out that the price of medium plate began to slump after recent increase. Medium plate price of key steelmakers in Handan and WuAn stopped increasing and dropped slightly last Friday. AOG of common plate in North China increased slightly which eased the resources shortage to some extent. It is predicated that flats will vibrate amid weak performance at the end of this year. Also, we shall not omit its possibility of declining.
Mr. Wang pointed out that the aforementioned situation is mainly caused by the following factors:
i) Weekly inventory of HRC began to increase. According to market surveillance, on December 20, inventory of HRC in 29 key cities totaled 3.6024 million tonnes; that in Shanghai was 0.923 million tonnes, Guangzhou was 0.775 tonnes, Tianjin was 0.227 million tonnes, Handan was 0.132 tonnes; CRC inventory reached 1.5314 million tonnes; medium plate inventory amounted to 1.316 million tonnes.
ii) Short of capital at the end of this year also imposed some pressure to the market. Domestic stock and futures market performed weak under the pressure of money shortage, which as a result affect the spot market.
iii) PMI of HSBC manufacturing in December eased back slightly which will impact the market to some extent.
iv) Market transaction is not satisfied after key steelmakers hiking the prices. Angang hiked HRC price for January, 2014 by 50 yuan per tonne following Baosteel and WISCO. Hebei Steel gave no subsidy for HRC in December, which made traders hike the market price, resulting in unsatisfied market transactions.
Source - www.steelhome.cn/en
China steel information centre and industry database
(www.steelguru.com)
Last week, domestic steel market edged down slightly as a whole with few market transactions. Social inventory began to increase, weakening the market confidence. Among them, flats price is relatively stronger than that of construction steel. Price of HRC and medium plate in key cities endured ups and downs while HRC in most areas remained stable.
Mr Wang Jinsheng vice chairman of Tianjin Association of Metal Material Trade, pointed out that the price of medium plate began to slump after recent increase. Medium plate price of key steelmakers in Handan and WuAn stopped increasing and dropped slightly last Friday. AOG of common plate in North China increased slightly which eased the resources shortage to some extent. It is predicated that flats will vibrate amid weak performance at the end of this year. Also, we shall not omit its possibility of declining.
Mr. Wang pointed out that the aforementioned situation is mainly caused by the following factors:
i) Weekly inventory of HRC began to increase. According to market surveillance, on December 20, inventory of HRC in 29 key cities totaled 3.6024 million tonnes; that in Shanghai was 0.923 million tonnes, Guangzhou was 0.775 tonnes, Tianjin was 0.227 million tonnes, Handan was 0.132 tonnes; CRC inventory reached 1.5314 million tonnes; medium plate inventory amounted to 1.316 million tonnes.
ii) Short of capital at the end of this year also imposed some pressure to the market. Domestic stock and futures market performed weak under the pressure of money shortage, which as a result affect the spot market.
iii) PMI of HSBC manufacturing in December eased back slightly which will impact the market to some extent.
iv) Market transaction is not satisfied after key steelmakers hiking the prices. Angang hiked HRC price for January, 2014 by 50 yuan per tonne following Baosteel and WISCO. Hebei Steel gave no subsidy for HRC in December, which made traders hike the market price, resulting in unsatisfied market transactions.
Source - www.steelhome.cn/en
China steel information centre and industry database
(www.steelguru.com)
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