Inquiries : 309 - 2013/9/13 17:15:47
China construction steel market fluctuates in a narrow range this week.
China¡¯s wire rod production totaled 38.50 million tonnes in the first four months of this year, up 15 percent year on year; bars& rebar production amounted to 69.78 million tonnes, up 13.7 percent from a year ago. Wire rod output hit 9.80 million tonnes in April, up 10.7 percent over a year earlier; rebar& bars output reached 18.17 million tonnes, up 8 percent.
It is estimated that daily output of wire rod achieved 326,800 tonnes in April, down 1.7 percent month on month; that of bars& rebar came to 605,700 tonnes, up 1.0 percent.
Government-subsidized housing starts has been more than 30 percent across the country in Jan.-Apr., surpassing that in the same time last year, according to the data from Ministry of Housing and Urban-Rural Development (MOHURD). Construction steel demand is likely to further rise as most of the government-subsidized houses are expected to start construction before the end of October. Moreover, oversupply pressure is expected to ease as power supply tense will inevitably dampen production growth. In view that construction steel traders are prone to take profits at current price level, China construction steel market is predicted to fluctuate slightly next week.
Unit: yuan per tonne
§¶ 6.5mm high speed wire rod
§¶18 -25mm rebar
China structural steel market maintains stable with downtrend.
By this Thursday, §¶50mm carbon structural steel price averaged at CNY5264 per tonne at 16 domestic key markets, down CNY6 per tonne over a week earlier; §¶50mm alloy structural steel price reached CNY5498 per tonne, down CNY4 per tonne.
Market transaction performed depressed on weakening demand as downstream enterprises are affected by power usage limit. It is learned that structural steel inventory remains at a relatively low level at present and relevant producers plan to cut May supply. Major steelmakers in East China have reduced likelihood to cut down structural steel ex-works price for late May. It is expected that China structural steel market will stabilize next week.
China medium plate market sustains the fluctuation in a narrow range this week.
By this Thursday, 8mm medium plate average price hit CNY5370 per tonne at 28 domestic major markets, down CNY6 per tonne from a week earlier; 20mm medium plate average price reached CNY5056 per tonne, down CNY4 per tonne.
According to statistics, China¡¯s medium plate production totaled 24.87 million tonnes in Jan.-Apr., up 14 percent year on year. April production hit 6.22 million tonnes, up 5.4 percent compared with the same period last year. It is estimated that daily output of medium plate reached 207,200 tonnes in April, down 1.8 percent month on month.
In view that medium plate inventory remains at a relatively low level in the marketplaces and end users haven¡¯t increased buying yet, China medium plate market is forecasted to continue fluctuating slightly next week.
CR/HR coil price swings mildly at domestic market this week. Market transactions remain tepid on diverged outlook. HR/CR coil price rose by CNY10-40 per tonne in Shanghai, Guangzhou and Tianjin market.
By this Thursday, 2.75mm HR coil average price hit CNY5066 per tonne at 28 domestic key markets, up CNY8 per tonne from a week earlier; 5.75mm HR coil price reached CNY4949 per tonne, up CNY14 per tonne; 0.5mm CR sheet price averaged at CNY5979 per tonne, down CNY7 per tonne week on week; 1.0mm CR sheet price averaged at CNY5641 per tonne, down CNY12 per tonne.
According to statistics, China¡¯s HR coil production totaled 50.62 million tonnes in the first four months of this year, up 3.5 percent year on year; CR coil production amounted to 18.40 million tonnes, up 17.9 percent. HR coil output hit 12.81 million tonnes in April, up 2.4 percent year on year; CR coil output reached 4.86 million tonnes, up 17.3 percent.
It is estimated that daily output of HR coil hit 427,100 tonnes, down 5.8 percent over a month earlier; that of CR coil reached 162,000 tonnes, down 3.7 percent.
China¡¯s leading steelmakers such as Ansteel and Shougang announce to raise HR coil ex-works price by CNY50-150 per tonne (including VAT) while keep CR coil price unchanged. Ansteel raise CR sheet ex-works price slightly. China HR/CR coil market is expected to continue fluctuating slightly next week.
China¡¯s coated/plated coil market maintains stable on the whole this week. Hot dipped galvanized coil price rises by CNY20-50 per tonne in Wuhan and Guangzhou market while maintains stable in the rest. Prepainted coil price moves relatively stable on the whole despite a decrease of CNY50 per tonne in Wuhan and Chengdu. Buying activities of end users remains depressed.
By this Thursday, 0.5mm galvanized coil average price hit CNY6133 per tonne at 18 domestic key markets, up CNY3 per tonne; 1.0mm galvanized coil average price reached CNY5838 per tonne, up CNY1 per tonne. 0.326mm prepainted coil price averaged at CNY7455 per tonne at 15 domestic key markets, down CNY10 per tonne from a week earlier; 0.476mm prepainted coil average price hit CNY7027 per tonne, down CNY13 per tonne.
According to statistics, China¡¯s galvanized coil production totaled 9.82 million tonnes in the first four months of this year, up 18.4 percent year on year; prepainted coil production amounted to 1.92 million tonnes, up 29.3 percent. Galvanized coil output hit 2.51 million tonnes in April, up 9.9 percent over a year earlier; prepainted coil output reached 520,000 tonnes, up 21.6 percent.
It is estimated that daily output of galvanized coil come to 83,500 tonnes in April, down 3.4 percent month on month; that of prepainted coil hit 17,500 tonnes, up 3.9 percent.
China coated/plated coil market is expected to stabilize next week.
China HR strip market maintains stable with downtrend this week.
By this Thursday, 2.75*235mmQ235 HR narrow strip kept flat at CNY4670 per tonne in Wuxi market and CNY4840 per tonne in Lecong market. It decreased CNY30 per tonne to CNY4620 per tonne in Tangshan market.
2.75*235mmQ235 HR narrow strip average price reached CNY4776 per tonne at 12 domestic key markets, down 2 per tonne from a week earlier; 5.5*685mmQ235 HR medium and wide strip average price stayed flat at CNY4818 per tonne. Overall, HR strip price heads down amid fluctuation at domestic market this week.
According to statistics, China¡¯s HR narrow strip production totaled 16.87 million tonnes in the first four months of this year, up 9.3 percent year on year. April output hit 4.30 million tonnes, up 1.6 percent compared with the same period last year. Daily output reached 143,100 tonnes in April, down 1.24 percent month on month. China¡¯s HR strip supply remains relatively high at present. It is predicted that HR strip price will fluctuate slightly at domestic market next week.
Heavy and medium sections
China¡¯s heavy and medium sections market changes a little this week.
By this Thursday, 5# Q235 angle average price stayed flat at CNY4876 per tonne at 28 domestic key markets, 12-16# Q235 channel average price kept at CNY4885 per tonne and 25# Q235 I beam average price increased CNY2 per tonne to CNY4957 per tonne.
According to statistics, China¡¯s heavy sections production totaled 3.75 million tonnes in the first four months of this year, up 9.7 percent year on year; medium and light sections production amounted to 15.14 million tonnes, up 19.8 percent over a year earlier; Heavy sections output hit 960,000 tonnes in April, up 14.9 percent year on year; medium and light sections output reached 4.26 million tonnes, up 18.2 percent. It is estimated that daily output of heavy sections hit 32,000 tonnes in April, up 5.6 percent month on month; that of medium and light sections came to 141,900 tonnes, up 1.8 percent.
Heavy and medium sections market is still under the pressure of oversupply. China heavy and medium sections market will maintain stable next week.
According to statistics from China Electricity Council (CEC), China¡¯s five largest power generation group including Huaneng, Datang, Huadian, Guodian and China Power Investment Corporation had a combined loss of CNY10.57 billion in thermal power generation in the first four months of this year, increasing CNY7.29 billion compared with the same period last year.
Moreover, the five groups have suffered a total loss of more than CNY60 billion in 2008-2010.
High coal price is the main reason for reduced enthusiasm in power generation of coal-fired power enterprises and the root cause of current power supply tightness.
The National Development and Reform Commission (NDRC) plans to raise on-grid power prices by 0.02 yuan per kilowatt-hour (kWh) in the provinces of Jiangxi, Hunan and Guizhou provinces in order to eliminate power shortages and boost local power companies' flagging profits. However, it is almost useless for coal-fired power enterprises to back in black and the power supply tightness will continue.
China¡¯s steel production in May is expected to fall down slightly due to the power usage limit, high raw materials price and steelmakers¡¯ maintenance.