China’s HRC export prices, which have been increasing week on week basis since past one month have become largely stable over past two weeks. The country’s domestic market which is quite volatile at the moment has forced the overseas buyers to lie low and wait for some stability in domestic steel prices.
HRC (A36) offers from China are currently assessed at USD370-375/MT, FoB China.Whereas, offers from CIS-origin HRC are heard to be in the range of USD 385-390/MT, FOB Black Sea.
Japan’s HRC offers are assessed at USD 400-410/MT, FoB Japan. Whereas India’s HRC export offers are unchanged at USD 400/MT, FoB basis.
*Aug’16 are month’s first week prices
Source: SteelMint Research
Another Chinese Steel Merger Likely
After the merger announcement of two Chinese steel biggies, Baosteel and Wuhang Steel in July, now comes the news of another likely merger of two more steel giants in China, Heibi Iron and Steel Group and Shougang Group.
Heibi Iron and Steel Group, country’s biggest mill by production and Shougang Group will be combined together to form Northern China Steel Group. While Baosteel and Wuhang Steel will be merged into Southern China Steel Group. Also the small steel manufacturing companies will be later absorbed in to two above steel giants in future. However, there is still no official confirmation from the companies yet.
The mergers of steel giants in China indicates the strict measures that are being adopted by the Chinese government in a move to cut the country’s steel overcapacity.
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