It is reported that the flats market presented vibrations this period for such varieties as carbon steel plate, low alloy plate and HRC.
Mr Luo general manager of Shanghai Shunma Industrial Co Ltd said the flats market is hopeful to firm up after Spring Festival and price of HRC may gain up to CNY 80 per tonne to CNY 100 per tonne.
Carbon HRC has dropped by CNY 200 per tonne this period, from CNY 3910 per tonne to CNY 3920 per tonne to CNY 3720 per tonne to CNY 3730 per tonne. Transaction was made at CNY 3680 per tonne last Friday. The plate is relatively stable, but also loses some CNY 30 per tonne to CNY 80 per tonne over half a month. The specialty plate such as boiler and container plate remains firm backed by ex-factory price lift.
For sales, the condition appears similar to a period ago. If the volume stays weak, the price may be negotiable and once the volume goes up, the traders will also pull the price up thus leading to constant fluctuations.
Mr Luo said so before the festival, the HRC market should continue the slides since both end users and suppliers are riding the fence, and some traders may probably lower the price further. But he believes the current fluctuation would avail of upturns after the festival. He said that "Then, the market will warm up, gaining some CNY 80 per tonne. HRC may go back to CNY 3850 per tonne to CNY 3900 per tonne and it is no problem for HRC price to climb to CNY 4000 per tonne this year."
Mr Luo offered following reasons.
1. The steely production cost will support ex-factory prices and the market subsequently
2. The demand will grow; development of green resources such as wind power and nuclear power will generate more demand for boiler and container steel, while growing automotive and household appliance industries will also expand CR/HRC consumption
3. The traders have confidence in the post-festival market and many of them have purchased the good at relatively high price.
Mr Luo analyzed that according to this the market is possible to warm up. But in view of huge stocks at the moment, the range of increase will be constrained.