China's flat carbon steel exports, particularly hot rolled coil (HRC), have increased slightly over the past week after the recession in mid-October following the recent declines in domestic steel prices.
Mysteel assessed that the export price of SS400 4.75 mm HRC was $882/ton as of October 29, falling $33/ton week on week to $882/ton, making its third consecutive weekly decline. The price of SPCC 1.0 mm cold rolled coil (CRC) has also dropped another $25/ton week for the third week, reaching $984/ton as of last Friday.
A Shanghai-based industry source said, "The declines in flat steel (export prices) are significant. With domestic steel prices gradually approaching international levels, some buyers are starting to follow Chinese market trends closely and are waiting for buying opportunities." He pointed out that some HRC export deals were concluded at a low price of $850/ton FOB.
According to Mysteel's follow-up, the price of HRC of the same quality in the ASEAN region is $870/ton CFR, unchanged from the week.
A Hongkong-based steel exporter said, "I expect more deals to be made as prices are lower and mills are trying to pick up orders." said .
The decline in Chinese export prices came after a month-long decline in domestic market prices. The national price of Q235 4.75 mm HRC has decreased by a total of RMB 470/ton ($73.6/t) over the past three weeks to Yuan 5,463.
On the other hand, China's semis imports are showing signs of cooling after the decline in domestic prices.
"It's impossible to find any trade opportunities these days," commented a steel importer in eastern China's Zhejiang province.
As of October 29, offers of foreign billet to China ranged from $700-710/t CFR China, however, according to Mysteel's tracking, the offer prices from Chinese buyers were only $660-670/t CFR.
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