Chinese HRC export offers remains stable this week owing to supply constraints in the global market. However there is enough room for the Chinese manufacturers to retreat the prices before the end of Chinese new year (end of January) as the cost of raw materials has started to decline.
Currently HRC export offers from China are heard in the range of USD 500-510/MT, FoB China. Meanwhile HRC prices in China’s domestic market are assessed in the range of RMB 3,700-3,750/MT (USD 533-540/MT).
Chinese CRC export offers down USD 20/MT W-o-W
Currently CRC export offers from China are assessed in the range of USD 570-580/MT, down by USD 20/MT on FoB basis. Export offers moved down this week owing to downtrend in the domestic market.
Although trading activities remains sparse this week as the manufacturers were reluctant to lower down their export offers amid tight supply. Therefore, the situation of deadlock also prevails between the buyers and sellers.
As per the source at export department of Mill headquarters in Hebei said that stock for January shipments have been fully booked and only 20,000-30,000/MT is left for Feb shipments. Therefore, tight supply coupled with volatility in the Chinese market has made the overseas buyers to adopt wait and watch approach.
HDG (Hot dipped galvanized) offers down by USD 10/MT
Exports offers of HDG is heard to be in the range of USD 625-635/MT, down by USD 10/MT on FoB basis. No major deals have been concluded yet as producers are not willing to accept the offers below the standard prices. Also this particular period, Chinese manufacturers are running out of inventory in HDG market.
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