TEX cited a source as saying that that there is a feeling of bottoming out in prices of steel plates for general use in the Asian region. Some mill that got an order at below USD 500 CFR in October/December appeared, which dropped to the level for other mills to be unable to follow it as might be expected, but at present, extreme cheap prices disappeared and those prices have become USD 540 to 560 CFR.
Ceasing to fall is not because of increasing demand but because prices came down to a limit to incur a loss.
The Chinese major mills noticed price increase of general use plates in January shipment to each customer. Baoshan Iron & Steel and Anshan Iron& steel raised their prices by 50 to 100 CNY (USD 8 to 16) and by 80 CNY (USD 13) respectively. The domestic market prices are also rising even slightly. Such price increase has not spread to Asia yet. The Asian market had been mainly affected by price drop in China in the past. However, in the backdrop that prices of general use plates have not risen, there are other reasons than China's effect. It is because a concern about an antidumping case on plates is looming in Indonesia and Taiwan where have demand. For this reason, as aggressive export to these countries must be avoided, once there are enquiries from other countries, offers rush to them. Consequently, the situation to be difficult to raise prices is generating. Under the circumstances, there are signs for prices of other steel products to rebound and rise while in those of general use plates, there are no such signs of rebounding.
Not only plates for general use but also those for construction machinery are dull. Prices do not fluctuate due to lack of inquiries but once there are inquiries, readiness of price down by about 10% is said to be necessary. Plates for shipbuilders are more miserable. Negotiations for Korea have not been settled yet for shipment of this quarter (October to December) because of strong request for price down by the shipbuilders but in next negotiations (for shipment of January to March) as well, the shipbuilders are asking for price down and simultaneously quantity decrease. From the quantity point of view, as it is questionable to conclude a long term contract and spot purchase is available, even the meaning of the conditional trade contract has been lost.
As for plates for tanks and boilers, prices of them are dropping by about 10% dragged down by plate prices for other uses but the price level of them is mostly over USD 1,100 varying depending on specifications and grades, and businesses for them are stable as usual.