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| China's HDG Sheet Market Falls For Three Consecutive Weeks |
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China's domestic market for hot-dip galvanized (HDG) sheets came down for three consecutive weeks, indicating a cumulative fall of Yn500/ton (US$74) in the Shanghai area, it was learned in Tokyo Monday. For a descending HDG sheet market, three main factors are held responsible. First, export-oriented businesses such as consumer electronics are marking time on new purchases of HDG sheets in reaction to an economic slowdown in the USA. Second, local manufacturing industries are reducing what they produce and what they take as materials to meet increased stocks of products. Third, items of construction are on the decrease in northern areas of China as construction demand for the Beijing Olympics is over. Therefore, it is understood that China's domestic demand for HDG sheets has fallen into a slack. China's production of air conditioners plunged to a total of 8,500,000 units in June from that of 11,520,000 units in May. Also, the nation's production of refrigerators fell off to a total of 4,310,000 units in June from that of 5,230,000 units. In a normal year, August marks a seasonal slack of China's domestic demand for steel products, leading to a downturn of their transaction prices from mid-August. There is speculation, though, that a marked seasonal decline is unlikely in China's domestic steel transaction prices, according to market sources. Among other things, there is no major increase in domestic stocks of steel products. Besides, China's major steelmakers are expected to hold back on any major price reduction in what they offer for export. In this connection, a reduction of around US$100/ton is on the increase in Chinese steelmakers' offer prices of HDG sheet exports. As a result, the current Chinese offers compare with the practices of Japanese integrated steelmakers for HDG sheet exports. Until recently, Chinese offer prices of HDG sheet exports were higher than their Japanese counterparts. The Japanese offers then stood at a level of US$1,200-1,300/ton FOB. |
| last modified : Fri 22 Aug, 2008 [10:44] |
