Construction steel

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.

Structural steel

China structural steel market maintains stable with downtrend.

By this Thursday, Ф50mm carbon structural steel price averaged at CNY5264 per tonne at 16 domestic key markets, down CNY6 per tonne over a week earlier; Ф50mm 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.

Medium plate

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

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.