Global Plate Offers Plunge on Weak Buying Interest

After HRC and CRC export offers from China fell by USD 10-15/MT, country’s plates export offers registered a fall of USD 25-30/MT this week.

Current offers for commercial grade plates from China are assessed at USD 345-350/MT, FoB basis for July shipments.

With volatility and pessimistic outlook in Chinese market, overseas buyers have entered in to wait and watch mode thus postponing their purchase plans for some time.

Bullish sentiments in Chinese market drove up its plates export prices by USD 50-60/MT in last two months post Lunar New Year Holidays in Feb’16. Chinese plates export offers reached as high as USD 475-480/MT, FoB basis in the month of Apr’16.

However, as the price surge in China was only sentiments driven and was not backed by any fundamental improvement in demand, prices started retreating to previous levels since the start of May’16.

Trade Barriers on Chinese Plates Imports

Due to unrestricted production coupled with no major improvement in demand, Chinese mills resort to exports to various countries at much cheaper rates. Due to this countries including US and European Union (EU) have imposed trade barriers on plates import from China.

In Feb’16, EU has initiated its anti-dumping duty probe on Chinese plates imports, while on 20 May’16, US voted to continue its anti-dumping duty investigations on cut to length plates from 12 countries including China.

Brazil has already extended anti-dumping duty on Chinese plates at the rate of USD 211.56/MT in Aug’15 which was levied for five years in 2013 whereas, Malaysia has imposed anti-dumping duty of 6.3-12% on Chinese plates in Feb’16.

Other Global Offers

Along with China, even manufacturers in Russia and Ukraine have also lowered down their export offers as buyers are not in a mood to accept such high offers.

CIS-origin S235 grade plates are currently heard at USD 440-450/MT, FoB Black Sea down from USD 480-490/MT, FoB Black Sea last week. India is currently offering its plates at USD 485-490/MT, FoB basis.

Plates Prices as on 26 May’16

Source: SteelMint Research