Chinese Flat Products Prices Fall after National Day Holiday Week

China’s steel market which was closed for one week on account of National Day holiday, opened with a marginal fall of USD 2-5/MT in its flat products prices.

Current offers for 2.5mm HRC are heard at USD 375-380/MT whereas, CRC (1.0mm SPCC) offers are at USD 440-445/MT, FoB China.

Flat steel prices in China have been falling since last three week before this National Day holiday break.

The domestic demand in the country is quite subdued which is pulling down steel prices. No major deals are being heard even at the current lowered price levels. However, with the increasing raw material cost, sellers wont be able to lower down their export prices beyond certain level.

CIS-origin flat products export offers have moved up by USD 10/MT this week in the wake of tight supply and reduced competition from Chinese suppliers. HRC offers are currently being assessed at USD 390-400/MT, whereas CRC offers are at USD 440-450/MT, FoB Black Sea.

Indian manufacturers have raised their HRC and CRC export offers given good sales realizations from domestic sales. With the effective increase in domestic flat products prices in the country by INR 6,000-6,500/MT(USD 95-100/MT) since Aug’16, Indian manufacturers have once again started focusing on domestic sales, thus increasing their export offers.

Currently HRC offers from India are at USD 435-440/MT. While, CRC offers are at USD 500-520/MT, FoB India basis.

Flat products offers from Japan/Korea are unchanged with HRC at USD 430/MT and CRC at USD 530/MT, FoB basis.

HR/CR Prices as on 12 Oct’16

*Prices in USD/MT
Source: SteelMint Research