December 02, 2008

Chinese plate export price rally further

It is reported that hot rolled steel plate prices in China are steadily going up and the upward trend seems to quite sticky. In Shanghai market, Q235 20mm plate from tier one steel makers was selling at CNY 4650 to CNY 4750 per tonne up by CNY 50 per tonne than last trading day; those from tier two steel mills at CNY 4430 per tonne. Common carbon 40mm plate prices have jumped to CNY 4850 per tonne.

The common carbon steel plate is actually in short supply as steel makers are diverting more to high end plate production, like pipe line steel and ship plates. Thus the decrease in common carbon plate supply is bolstering the swift rise in prices. The strong demand in both domestic and overseas market is also contributing the jack up.

Export prices have also seen great increases in the last weeks. Now common carbon plate from tier two steel makers are prevailing at USD 670 to USD 700 per tonne on FOB basis and those from tier one producers are well above USD 700 per tonne FOB basis.

Traders say that activities are not low since importers have not been ready to accept such a quick increase in prices. A Europe based trader told Mysteel "Many people in Europe are very unsure about the rumor about anti-dumping for Chinese plates. It seems to us actions are under preparation by EUROFER and European Comity and many customers are not ready to place orders and to take the future risk. At the same time, rumor goes that Chinese government probably would increase steel export tax rate in the near future, which is also adding the uncertainties.”

(Sourced from MySteel.net)