It is reported that with the declining steel product price in domestic market, medium plate market price slid. During the first ten days of June medium plate price even fell down by over CNY 900 per tonne in some main markets. Medium plate, especially those rolled by medium plate machine is in tight supply.

    China's demand for medium plate expands during these year as the country' industrialization process speeds up. Take shipbuilding industry as an example. China is expected to realize over 28 million deadweight tons of capacity this year and 50 million deadweight tons next year. Thus, the shipbuilding industry's potential demand for medium plate will be doubled.

    Short supply of medium plate does not mean medium plate market price can keep strong. For several years, China's hot-rolled steel strip capacity rocketed up. As medium plate supply falls short at the same time, most hot continuous wide strip rolling units produce heavy plate and coil, casting great impact on medium plate market. At present, HR coil market is very weak, pulling down market price for medium plate.

    Medium plate makers can still get high profits. Under such circumstances, large quantity medium plate makers maintain their existing capacity. Besides, many large-scale steel makers prefer to reduce capacity of bar and wire rod products and do their best to secure medium plate production. In other words, domestic medium plate outputs will not drop in a certain period.