China’s exports of flat-rolled carbon steel, particularly those of hot-rolled coils (HRC), have picked up slightly over the past week after the doldrums in mid-October following the recent slumps in domestic steel prices, according to Mysteel’s weekly report.
Mysteel assessed the export price of SS400 4.75mm HRC was $882/tonne as of October 29, down by a larger $33/t on week and making for the third successive weekly decline. That of SPCC 1.0mm cold-rolled coil (CRC) also declined for the third week by another $25/t on week to reach $984/t as of last Friday. Both are in terms of FOB from North China’s Tianjin port.
“The falls in flat steel (export prices) are notable. With domestic steel prices gradually moving closer to international levels, some buyers are starting to closely watch Chinese market trends and are waiting for opportunities to buy,” a Shanghai-based industry source observed, pointing out that some HRC export deals had been concluded for as low as $850/t FOB.
In comparison, the price of HRC of the same grade in the ASEAN region was assessed at $870/t CFR, unchanged on week, according to Mysteel’s tracking.
“As prices are lower and mills are trying to collect orders, I expect more deals to be concluded,” a Hongkong-based steel exporter also noted.
The tumble in Chinese export prices followed the month-long slide in domestic market prices, where the national price of Q235 4.75mm HRC has fallen steadily by a total of Yuan 470/tonne ($73.6/t) over the past three weeks to Yuan 5,463/t including the 13% VAT as of October 29, according to Mysteel’s assessment.
On the other hand, Chinese imports of semi-finished steel are showing signs of cooling in the wake of the slide in domestic prices.
“It is impossible to find any trading opportunities these days,” commented a steel importer based in East China’s Zhejiang province.
By October 29, offers of foreign billets to China ranged from $700-710/t CFR China, but the bid prices of Chinese buyers were only $660-670/t CFR, according to Mysteel’s tracking.
Written by Olivia Zhang, zhangwd@mysteel.com
This article has been published under an article exchange agreement between Mysteel Global and SteelMint.
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