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Jul.06.2020 1USD=7.0663RMB
  SteelHome >>Steel>>Market Info>>Weekly Report
 
Weekly Report of China Steel Market for June 12-19, 2020

http://en.steelhome.cn [SteelHome] 2020-06-22 10:20:31

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Chinas steel market price fluctuated, among which construction steel prices slightly decreased while flat steel prices remained strong. Operating rate of blast furnaces and electric furnaces dipped and trading volume dropped in two consecutive weeks. SteelHome China Steel Price Index (SHCNSI) closed at 92.54 points (4,003 yuan) on June 19, down 0.02% from the previous week.

Overview

In May, China production resumption progressed well and the national economy gradually recovered. According to National Bureau of statistics, the added value of national industrial enterprises above designated sizes in May increased by 4.4%, which is 0.5 percentage point higher than in April. The total retail sales of social consumer goods was 3197.3 billion yuan, a year-on-year decrease of 2.8%, which was 4.7 percentage points lower than that in April. The investment in fixed assets from January to May totaled 19919.4 billion yuan, down 6.3% year on year, among which investment in infrastructure construction dropped by 6.3% and manufacturing investment was down 14.8% year on year.

Recently, construction steel consumption reduced for the rainy weather in South China. Mill inventory has increased for two consecutive weeks and the decrease in market inventory slowed down. Meanwhile, demand for flat steel products remained plain, then market inventory kept dropping.

SteelHome expects that steel price will increase amid fluctuation next week

HR/CR Plate/Coil

HRC

Chinas HRC market price generally increased amid fluctuation during the week ended June 19, 2020.

By June 19 (Friday), the average price of 2.75mm Q235 HRC in 28 Chinese markets came to 3,903 yuan/t, up 43 yuan/t from the previous week; 5.75mm Q235 HRC was 3,794 yuan/t, up 31 yuan/t respectively from the previous week.

According to SteelHome survey, as of June 18, HRC market inventory totaled 2.63 million tons per day, down 70,000 tons from June 11. Daily average production of medium and heavy strip totaled 458,000 tons in May, up 6% from April. The supply of HRC kept rising. The market was boosted by the increased sales price announced by Baosteel, Ansteel, Shougang and Benxi steel.

SteelHome predicts that HRC market price will rise next week.

CRC

Chinas CRC market price generally went up during the week ended June 19, 2020.

By June 19 (Friday), the average price of 0.5mm CRC and 1.0mm SPCC CRC in 28 major Chinese steel markets in the week were 4,479 yuan/t and 4,240 yuan/t, up 24 yuan/t and 25 yuan/t respectively from the previous week.

CRC market and mill inventories attained 1.96 million tons, down 80,000 tons from the previous week. As for steel mills, market confidence was improved as Benxi Steel, HBIS Group and Shougang raised the CRC ex-work price by 200-300 yuan/t. As for downstream industries, the sales of passenger vehicles has decreased for two consecutive weeks in June.

SteelHome predicts that CRC market price will increase amid stability next week.

Construction Steel

Construction steel market prices edged down during the week ended June 19, 2020.

By June 19 (Friday), the average price of 8mm HPB300 high speed wire rod and 18-25mm HRB400 rebar at 28 markets was 3,844 yuan/t and 3,757 yuan/t, down 18 yuan/t and 17 yuan/t from last week.

The decrement in construction steel market inventory slowed down while mill inventory moderately rose in two consecutive weeks. According to SteelHome survey, construction steel inventory totaled 9.695 million tons as of June 19, down 263,000 tons from June 12. Mill inventory was 5.549 million tons, up 378,000 tons from the previous week. The construction steel consumption reduced due to rainy weather in South China. Meanwhile, daily trading volume of rebar and wire rod in May was 781,000 tons and 460,000 tons, up 11% and 6.8% respectively from April.

SteelHome predicts that construction steel market price will fluctuate next week.

Medium Plate

Chinas medium plate market price stabilized during the week ended June 19, 2020.

By June 19 (Friday), the 8mm Q235 medium plate prices averaged 4,180 yuan/t and 20mm Q235 medium plate was 3,885 yuan/t, up 3 yuan/t from last week.

Market inventory of medium and heavy plate kept decreasing and trading volume dipped in two consecutive weeks. The increase in infrastructure construction was narrowed. Demand for machinery products such as excavators remained strong.

SteelHome predicts that Chinas medium plate market price will go up next week.

Plated/ Color Coated Steel

Chinas plated steel prices stabilized and color coated steel increased amid stability during the week ended June 19, 2020.

By June 19 (Friday), average price of 0.5mm and 1.0mm plating steel of 18 markets was 4,777 yuan/t and 4,462 yuan/t, up 9 yuan/t respectively from last week.

The price of 0.326mm color coating steel and 0.476mm color coating steel was 5,936 yuan/t and 5,724 yuan/t, up 23 yuan/t and 25 yuan/t respectively from previous week.

Recently, domestic leading steel mills raised painted sheet/coil ordering price by 200-300 yuan/t, then the cost rose.

SteelHome predicts that Chinas plated and color coated steel price will rise amid fluctuation next week.

Strip

Chinas hot-rolled strip market price saw increases during the week ended June 19, 2020.

By June 19 (Friday), the average price of 2.75mm * 235mm was 3,836 yuan/t, up 23 yuan/t from last week and 5.5mm * 685mm strip of 28 Chinese markets were 3,830 yuan/t, up 23 yuan/t from last week.

Strip domestic prices weakened at first then increased. On Friday, trading volume rose as well as ex-work price. It was learned that most enterprises such as Jinxi Steel and Ruifeng Steel maintained strip production lines and some enterprises stopped production. The supply of strip decreased, which would support the market prices. For downstream pipe mills and strip enterprises, orders received kept stable. Due to rainy weather, the demand in South China market dropped.

SteelHome predicts that HR strip price will rise amid fluctuation next week.

Sections

Chinas section steel price dipped during the week ended June 19, 2020.

By June 19 (Friday), the average price of 5# Q235 angle, 16# Q235 channel and 25# Q235 I beam in 28 Chinese marketplaces was 3,859 yuan/t, 3,796 yuan/t and 3,859 yuan/t, down 7 yuan/t, down 6 yuan/t and 7 yuan/t compared to the previous week.

The average price of Q235 200* 200mm, 400* 200mm and 400* 400mm H beam was 3,730 yuan/t, 3,792 yuan/t and 3,913 yuan/t, up 3 yuan/t, 6 yuan/t and 13 yuan/t from the previous week.

It was learned that the transactions of section steel were plain and downstream industries procured the steel products in accordance with the demand.

SteelHome predicts that Chinas section steel market price will stabilize next week.

Structural Steel

Chinas structural steel price saw both ups and downs during the week ended June 19, 2020.

By June 19 (Friday), the average price of 50mm 45# carbon structural steel and 40Cr alloy structural steel of 22 Chinese markets was 3,929 yuan/t and 4,166 yuan/t, flat and up 4 yuan/t respectively from the last survey.

As for steel mills, daily price of steel mills in Jiangsu, Zhejiang and Shandong markets stabilized except some steel mills recued the ex-work price by 60 yuan/t. The cost still strongly supported the market prices. Mill inventory slightly rose. According to SteelHome survey, round steel inventory of eight special steel enterprises in Shandong Province amounted to 212,000 tons by June 18, 2020, up 0.24% from June 11; round steel inventory of seven special steel enterprises in Jiangsu Province amounted to 289,100 tons by June 18, 2020, up 0.73% from June 11. At present, mill inventory was at a low level. For the weak demand, slack transactions and high market prices, traders showed strong willingness to sell products for fund. Market sentiment was bearish.

SteelHome predicts that domestic structural steel price will stabilize in most markets while dipped in some markets next week.

Table 1: Chinese Steel Price during June 12-19, 2020 (price in yuan/t)

Product

Spec.

Size

Average price (yuan/t)

Average price (dollars per tonne)

Weekly change (yuan/t)

Weekly change (dollars per tonne)

HRC

Q235

2.75mm

3903

550.4

+43

6.1

Q235

5.75mm

3794

535

+31

4.4

CRC

SPCC

0.5mm

4479

631.6

+24

3.4

SPCC

1.0mm

4240

597.9

+25

3.5

Wire Rod

HPB300

8mm

3844

542.1

-18

-2.5

Rebar

HRB400

18-25mm

3757

529.8

-17

-2.4

Medium plate

Q235

8mm

4180

589.5

+3

0.4

Q235

20mm

3885

547.9

+3

0.4

Galvanized sheet

DX51D+Z

0.5mm

4777

673.6

+9

1.3

DX51D+Z

1.0mm

4462

629.2

+9

1.3

Coated sheet

CGCC

0.326mm

5936

837.1

+23

3.2

CGCC

0.476mm

5724

807.2

+25

3.5

Strip

Q235

2.75mm * 235mm

3836

540.9

+23

3.2

Q235

5.5mm * 685mm

3830

540.1

+23

3.2

Angle Steel

Q235

5#

3859

544.2

-7

-1

Channel Steel

Q235

16#

3796

535.3

-6

-0.8

Q235

25#

3859

544.2

-7

-1

H beam

Q235

200* 200mm

3730

526

+3

0.4

Q235

400* 200mm

3792

534.7

+6

0.8

Q235

400* 400mm

3913

551.8

+13

1.8

Structural Steel

45#

50mm

3929

554.1

-

-

40Cr

50mm

4166

587.5

+4

0.6

Source: SteelHome

Table 2: China Steel Export Price on June 17, 2020

Price in US dollars per ton, FOB, China ports

Product

Spec & Size

Export Price

Weekly up/down

Note

Square steel

Q235 120mm

400

-

-

Rebar

B500 12-25mm

460

-

Theoretical weight, small tolerance

Wire rod

SAE1008 6.5mm

440

-

Actual weight

Medium plate

SS400 12-40mm

465

-

-

HR coil

SS400B 3-12mm

455

-

-

CR coil

SPCC 1.0mm

510

-5

-

H beam

Q235 200*100m

500

-5

Theoretical weight, small tolerance

Galvanized sheet

SGCC 1.0*1250mm

560

-5

Zn: 120g, regular zinc spangle

Hot dipped galvanized sheet

DX51D+Z 1.0mm

560

-5

Zn: 120g, no zinc spangle

Contact SteelHome for buying steel from China


(To contact the reporter on this story: nancy.bu@steelhome.cn or 0086-21-50585358 15955340612)
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