Imported HRC offers to Vietnam saw correction on falling Chinese steel prices. Notably Chinese steel prices have corrected by USD 30/ MT since September beginning on rising inventories and falling raw material prices.
Current offers for 2 mm HRC grade SEA 1006 ( re-rolling grade) being assessed in the range of USD 560-580/MT CFR Vietnam.
“Imported HRC offers to Vietnam has dropped in last couple of weeks owing to Chinese prices. Current offers for re-rolling grade from China are at around USD 570-575/MT, from India at around USD 580-585/MT and Brazil at USD 560-565/MT CFR Vietnam.” said a re-roller based in Ho Chi Min city of Vietnam.
Buyers are hesitant to make fresh booking looking at sharp fall in prices, but I feel further downside from this level is unlikely, he further added.
Lower Chinese steel exports
Chinese steel production and exports will fall in coming months amid government’s guideline to curb pollution,specially in winter season.
Chinese government has already notified to stop sintering and pelletising process in some of the key steel producing regions.
China steel mill are expected to cut down their utilization levels to 50% during November – March from a current utilization level of 80%. Market expects this will cut down steel production in China by 45MnT.
Chinese steel exports during Jan – Aug 2017 are recorded at 54.27 MnT decline by 29% against 76.57 MnT during same period last year.
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