October 07, 2008

Chinese plate export prices on up trend

It is reported that plate prices have kept firm in the past two weeks in Chinese domestic market but export prices have firmed up due to strong global demand.

In Shanghai, commodity grade 14mm to 20mm plate by Yingkou Steel was being offered at CNY 5180 per tonne to CNY 5250 per tonne and Maanshan Steel was quoted at CNY 5100 per tonne while smaller producers were quoting at lower level of CNY 4950 per tonne to CNY 4980 per tonne

Plate prices are still on an upward trend, bolstered by robust demand from mechanical industry and ship building sector. The lower growth rate for plate output and huge demand from home and abroad has led to short supply. Hence export price is continuously on the rise in 2007 and the trend continues in January.

Now tier one steel producers have shoot up base price for S275JR 15mm to 40mm to USD 870 per tonne to USD 875 per tonne on FOB basis for April shipment as compared with USD 850 per tonne to 860 per tonne in early this month. While those for plates by tier two steel mills are prevailing at USD 830 per tonne to USD 840 per tonne on FOB basis for end March or early April delivery. However transaction level is believed to be at USD 825 per tonne to USD 830 per tonne on FOB basis.