Medium and Heavy Plate: Last Week’s Prices Showed Volatile Decline, Expected to Continue This Week
Last week, the Chinese medium and heavy plate market prices exhibited a volatile downward trend with overall average transaction performance. The total inventory for medium plates in China was 294.23 tons, an increase of 23.8 thousand tons from the previous week, with the largest increase in the East China region. The operating rate was 81.54%, down 3.08% from the previous week. Steel mill weekly actual production was 1.526 million tons, down 23.3 thousand tons from the previous week. Steel mill capacity utilization was 93.84%, a decrease of 1.43% from the previous week. Steel mill inventory was 790.2 thousand tons, an increase of 6.8 thousand tons from the previous week.
Supply Side:
Production pace remained stable.
High production continued with ample market resource arrivals.
Slight inventory increase.
Demand Side:
Poor demand for steel used in construction structures.
Reduced demand for steel used in engineering machinery.
Persistent weak off-season effect.
Market Sentiment:
Low market confidence.
Traders focused on inventory reduction and cash flow.
Cautious downstream orders.
Short-term Outlook:
Domestic medium plate prices are expected to continue their volatile decline this week.
Section Steel: Overall Weak Trend Last Week, Expected to Remain Weak This Week
Chinese Section Steel Prices (July 15-19)
| Type | Average Price (yuan/ton) | Week-on-Week Change (yuan/ton) |
| 200*200 H-beam | 3611 | -34 |
| 588*300 H-beam | 3741 | -32 |
| 5# Angle steel | 3795 | -59 |
| 16# Channel steel | 3808 | -59 |
| 25# I-beam | 3878 | -68 |
Supply Side:
Production of angle and channel steel: 299.5 thousand tons, down 21.7 thousand tons.
H-beam steel production: 304 thousand tons, up 23.6 thousand tons.
Steel mill losses narrowed.
Some mills resumed normal production, increasing operating rates and capacity utilization.
Demand Side:
Overall weak market demand.
Transactions mainly for low-priced, essential resources.
Cautious outlook among downstream merchants, only replenishing critical needs.
Overall Analysis:
Small profit recovery for steel mills.
Increased production compared to last week.
Some mills still reducing inventory.
Cautious sentiment among traders, focusing on existing inventory sales.
Poor downstream demand with no positive news to support price increases.
Short-term Outlook:
Domestic section steel prices are expected to remain weak this week.
Conclusion
The current landscape of the steel market within the shipbuilding industry reflects ongoing supply-demand imbalances, cautious market sentiment, and weak downstream demand. Prices across various steel products, including medium and heavy plates and section steel, are expected to continue their volatile or weak trends in the short term.