Current offers 2.5 mm HRC (SS 400) from China for January shipments are being assessed in the range of USD 270-275/MT, unchanged from last week.
Offers from Korea at USD 315/MT (-USD 10/MT) and from Black Sea at USD 295-300/MT, All prices are on CNF India basis.
As per SteelMint assessment, steel mills in China are going steady in an attempt to stablise market and avoid further losses.According to CISA (China Iron and Steel Association), major steel producers in China suffered total losses of 28.12 billion yuan (USD 4.42 billion) in first three quarters of 2015.
It is reported that Chinese mills having total capacity of 50 MnT announced their closure from January till date. Indian buyers are going slow in their buying giving up to the pressure of depressed domestic demand.
However HRC prices in China’s domestic market weighed down today by 10 yuan amid negative market sentiments. 2.5 mm HRC is being offered in the range 1810-1820/MT yuan (USD 283-284/MT).
Thus it is likely that pressure of plunging domestic prices in China may take a toll on its steady export offers and export prices may fall by end of November.
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