Chinese HRC exports offers have dropped by USD 75/MT in a week on account of falling domestic prices. Current offers for SS400 HRC is being assessed at around USD 410-420/MT FOB China, however, no major trades being reported at these levels.
Market participants are expecting that prices may fall further looking at sharp fall in domestic prices.
Traders report that increase in steel production amid better profitability is the major reason for fall in prices.
Domestic prices of HRC in China are assessed at RMB 2,880/MT (ex-Shanghai), including VAT of 17%, which were seen at RMB 3,280/MT last week (on 3 Apr’16).
CRC export offers dip down
CRC export offers have also corrected by USD 50/MT in-line with falling HRC prices. Current offers for CRC are assessed at USD 460-470/MT FoB China, which were hovered within USD 510-520/MT last week.
Participants report that sudden price hike was unjustified and prices had to fall on low trade volumes.
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