China’s Flat Products Export Offer Surges amid Gains in Domestic Market

Chinese manufacturers have raised their flat product export offers by USD 20-25/MT, thus continuing the upward price trend since past week.This price surge is an effect of bullish sentiments prevailing in the country’s domestic market.

The HRC offers from China are hovering in the range of USD 410-415/MT FoB China basis. Whereas CRC export offers are assessed to be at USD 480-485/MT.

Currently no major deals are being heard in the market as prevailing prices are considered to be too high by the overseas buyers. Despite this sellers are reluctant to lower down their prices as they are not under any pressure to complete their export sales target.

China has targeted to cut down its production capacity by 45 MnT this year.However, various measures to cut over supply and control environmental pollution failed to bring the targeted drop in country’s steel output.

In the start of 2016, the Chinese government has announced various stimulus packages in order to boost country’s domestic demand. This has resulted in improved steel demand from construction and infrastructure sector respectively.

CIS Countries Offer

CIS-origin flat products export offers have registered an increase of USD 20-25/ MT this week due to rise in coking coal and scrap prices .Current export offers of HRC are in the range of USD 405-415/MT while CRC offers are heard at USD 440-445/MT FoB Black sea.

Japan /Korea export offers

HRC Offers from Japan/Korea have also registered an increase of USD 20-25/MT this week following increase in China’s HRC export offers and increased raw material prices. HRC offers from Japan are being heard at USD 430-435/MT, FoB basis. HRC offers to Bangladesh are assessed at USD 485-490/MT, CNF Chittagong.  However, no deals were heard at these rates in Bangladesh market.

India’s Offers

Exports offers of HRC from India are heard to be at USD 435-440/MT FoB India basis. Currently Indian manufacturers are focusing both on domestic and export sales as both the markets are providing good realisations to them.

Flat product prices as on 24 Oct ’16

*Prices in USD/MT
Source-SteelMint