The domestic flat product prices in China are on a recovery ahead of expected production cuts in Tangshan, a major steel producing city in China.
With the upcoming International Horticultural Exposition in Tangshan from April to October, the local government there has formally issued mandatory production cut targets in a bid to guarantee the air quality in the city during the expo.
The rebound in China’s domestic market has resulted in seller focusing more on domestic rather than export market.
Export prices from China have surged significantly in past two weeks. Current offers for 2.5mm HRC are heard at USD 355-360/MT, FoB China. The prices are on a record high since last June.
As per market sources, Chinese mills are currently in wait and watch mode in order to get clear direction about domestic prices. Once it is clear about how much production cut will happen in Tangshan, both domestic and export prices will get a more firm direction.
Leave a Reply