Chinese HGI coil market inactive
2024-04-09 08:20:29 [Print]
BEIJING (Asian Metal) 9 Apr 24 - The domestic HGI coil market continues running slowly on Monday, but traders lift prices tentatively boosted by the prices rebound of raw materials. Presently, the mainstream prices of HGI coil DX51D+Z 1.0mm*1,250mm*C with zero spangles stand at RMB4,840-4,890/t (USD669-676/t) and RMB4,810-4,860/t (USD665-672/t) D/P respectively in warehouses Tianjin and Guangzhou, up by RMB30/t (USD4/t) and RMB50/t (USD7/t) from last Sunday. Insiders believe prices of HGI coil powerless to edge up further and might keep flat in the coming several days seeing the bearish atmosphere in the market.
"We tried to contact several regular clients and informed them about the price rise on Monday, but they refused to purchase in large quantities and strictly bought from hand to mouth. Finally, we just sold 300t of HGI coil DX51D+Z 1.0mm*1,250mm*C at RMB4,860/t (USD672/t), and sold 500t of the material at RMB4,830/t (USD668/t) last Sunday," revealed a trader in Tianjin. According to him, downstream plants maintain low operating rates of around 60% dragged by insufficient orders for final products or thin profits, and thus remain inactive in purchasing raw materials. Besides, the downward price trend since the middle of February heightens the cautious attitudes of end users to a large extent. Given the slow market, the trader predicts narrowly stable prices of HGI coil in the coming several days.
Holding around 14,000t in stock, the trader would sell 35,000t of HGI coil in April, similar to March. Based on the typical monthly sales volume of 45,000t, he recorded the sales volume of approximately 290,000t in 2023 and 800,000t in the first three months of 2024.
Another trader in Guangzhou confirms the quiet market. "Though downstream plants maintained production during the Tomb Sweeping Day holiday, the market saw rare transactions as they tended to separate the purchasing volumes, believing prices would go down further in the remainder of April," explained the trader. In the meantime, he pointed out that local stockpiles run at the low level of around 400,000t now as traders kept cautious about supplementing inventories in the past two months discouraged by the poor sales performance. Quoting RMB4,900/t (USD677/t) D/P for HGI coil DX51D+Z 1.0mm*1,250mm*C, the trader failed to conclude any deals even at the price as low as RMB4,850/t (USD670/t) on Monday, and sold 100t of the material at RMB4,800/t (USD664/t) last Sunday. The trader forecasts flat prices of HGI coil in the forthcoming several days seeing the prices rebound of raw materials but the slow market.
With the regular sales volume of 5,000tpm, the trader estimates that the sales volume would achieve 3,000t in April, in line with March. He roughly sold 44,000t of HGI coil in 2023 and 7,000t in the first quarter of 2024. The trader holds around 5,000t in inventory for the moment.
"We tried to contact several regular clients and informed them about the price rise on Monday, but they refused to purchase in large quantities and strictly bought from hand to mouth. Finally, we just sold 300t of HGI coil DX51D+Z 1.0mm*1,250mm*C at RMB4,860/t (USD672/t), and sold 500t of the material at RMB4,830/t (USD668/t) last Sunday," revealed a trader in Tianjin. According to him, downstream plants maintain low operating rates of around 60% dragged by insufficient orders for final products or thin profits, and thus remain inactive in purchasing raw materials. Besides, the downward price trend since the middle of February heightens the cautious attitudes of end users to a large extent. Given the slow market, the trader predicts narrowly stable prices of HGI coil in the coming several days.
Holding around 14,000t in stock, the trader would sell 35,000t of HGI coil in April, similar to March. Based on the typical monthly sales volume of 45,000t, he recorded the sales volume of approximately 290,000t in 2023 and 800,000t in the first three months of 2024.
Another trader in Guangzhou confirms the quiet market. "Though downstream plants maintained production during the Tomb Sweeping Day holiday, the market saw rare transactions as they tended to separate the purchasing volumes, believing prices would go down further in the remainder of April," explained the trader. In the meantime, he pointed out that local stockpiles run at the low level of around 400,000t now as traders kept cautious about supplementing inventories in the past two months discouraged by the poor sales performance. Quoting RMB4,900/t (USD677/t) D/P for HGI coil DX51D+Z 1.0mm*1,250mm*C, the trader failed to conclude any deals even at the price as low as RMB4,850/t (USD670/t) on Monday, and sold 100t of the material at RMB4,800/t (USD664/t) last Sunday. The trader forecasts flat prices of HGI coil in the forthcoming several days seeing the prices rebound of raw materials but the slow market.
With the regular sales volume of 5,000tpm, the trader estimates that the sales volume would achieve 3,000t in April, in line with March. He roughly sold 44,000t of HGI coil in 2023 and 7,000t in the first quarter of 2024. The trader holds around 5,000t in inventory for the moment.
