Increase in billet and HRC prices in domestic Chinese market led to subsequent rise in China’s HRC export offers.
New year brought in a glimpse of hope for Chinese steel industry as domestic prices of finished and semi-finished products there inched up in the start of Jan’16.
HRC prices in China surged by 60 Yuan (USD 9/MT) over last week following increase in billet prices. Billet prices in China also increased by 60 Yuan (USD 9/MT) over last week.
Following rise in domestic HRC prices of China, its export offers also moved up by USD 5-10/MT over last week.
Current offers for 2.5 mm HRC (SS 400) are assessed in the range of USD 270-275/MT, FoB China and at USD 280/MT, CNF India basis.
“The Chinese mills have followed a production cut and its effect can be observed on both domestic and export prices, however it is to be seen if there is buying interest at these increased rates”, quoted an importer based in Mumbai.
However offers from Korea and Japan at around USD 270-280/MT FoB and CIS region at USD 255/MT FoB Black Sea.
Indian steel market is waiting for Minimum Import Price (MIP) and thus there is no buying interest for imported offers. However how India’s domestic market will react to China’s price rise remains to be seen.
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