Chinese HRC Export Offers Down amid Domestic Market Plunge

This Monday saw a further fall of USD 25-30/MT in China’s HRC export prices against last week. Current HRC export offers are assessed at USD 380-385/MT, FoB China basis. This plunge came after the subsequent drop in China’s domestic HRC prices over the weekend.

Domestic HRC prices in eastern China fell by USD 30-35/MT) and is currently assessed at RMB 2,600-2,620/MT (USD 398-401/MT) (ex-Shanghai).

Steel prices in China rebounded in the first four months after two years backed by credit easing and improvement in property market as the government sought to shore up growth by offering stimulus packages.

However, with this many zombie enterprises returned to the market in order to take advantage of improved profitability which led to increased crude steel production in the month of April and fall in steel prices.

Production is likely to increase further in the May month resulting which steel prices in China may plunge down in coming days.

No new offers are currently being heard from Korea as the shipments are already booked till July whereas HRC offers from CIS countries are being assessed at USD 465-470/MT, FoB Black Sea.

HRC prices as on 16 May’16

Source: SteelMint Research