Flat Steel Export Offers Down in China amid Domestic Voltality

China’s HRC export offers continue to plunge for 4^th week consecutively this Monday, after registering a fall of USD 15-20/MT.

Current offers for commercial grade HRC from China are heard at USD 345-350/MT, FoB basis.

With significant fall of more than USD 100/MT in HRC prices during last one month, overseas buyers have became cautious of booking Chinese HRC and are waiting for prices to stabilize in near term.

Other global HRC offers

Although, there has been considerable fall in China’s HRC offers, the plunge in Korean and CIS countries’ HRC export offers is not in-line with price correction in China.

HRC offers from CIS countries have fallen by USD 40-50/MT in last one month. While, offers from Korea and Japan have remained almost the same with minor correction of USD 10-15/MT.

Current HRC offers from CIS countries are assessed at USD 430-435/MT, FoB Black Sea. Whereas, HRC prices (1.6 mm) from Korea are heard at USD 490/MT, CFR Bangladesh.

Korean HRC of thickness 1.6 mm supplied to Bangladesh is usually not manufactured by Chinese firms, owing to which, Korean exporters are able to maintain high HRC export prices.

In order to restrict cheaper HRC import from China, key steel consuming nations, US and European Union (EU) have already started their anti-dumping duty probe on Chinese import. Thus, other HRC exporting countries such as Russia, Korea and Japan have taken advantage of this situation and kept their offers high.

HRC prices as on 30 May’16

Source: SteelMint Research