Commentary on the Medium and Heavy Plate Benchmark Price Index

Domestic medium and heavy plate prices stayed broadly stable across 28 major markets on June 12. The average price of 20mm Q235 plate edged down RMB 1/ton day-on-day to RMB 3,575/ton.

The SteelHome medium and heavy plate index (SHSPI-MP) closed at 76.5 points (RMB 3,572/ton), flat from the previous trading day. The weekly average stood at 76.52 points (RMB 3,573/ton), down 0.28 points (RMB 13/ton) week on week; the ten-day average was 76.5 points (RMB 3,572/ton), slipping 0.2 points (RMB 9/ton); the monthly average reached 76.66 points (RMB 3,579/ton), falling 0.29 points (RMB 14/ton); the year-to-date average registered 73.96 points (RMB 3,453/ton), a year-on-year drop of 1.29 points (RMB 61/ton).

Most steel mills kept ex-factory prices unchanged, only Tianjin Iron & Steel in North China lifted its offer by RMB 10/ton. Black futures rallied on the day, boosting market sentiment and lifting trading volumes slightly. Overall market prices dipped by RMB 10-30/ton this week amid sluggish transactions, which have declined for five consecutive weeks.

Plate mills maintained high operating rates with limited production maintenance. While social inventories declined moderately, mill inventories climbed. Affected by the plum rain and high temperatures, downstream demand will be restrained and inventory destocking will slow down, leaving limited upward momentum for plate prices.

Note: The base date of SteelHome Price Index is September 28, 2004.