Chinese HRC export prices bottom out

Release date:2015-04-24 Clicks:58 Font display:【Large】  【Medium】  【Small】

Chinese HRC export prices have dropped over the week again on sluggish external demand. Producers are focused on the local market, where buying activity is better and prices are more attractive for sellers. However, domestic sales are not able to support export quotes yet, as quantities are not enough. China’s mills have lowered export offer prices by $10-15/t over the week to $350-370/t FOB mainly due to low demand in the overseas markets. “Foreign clients are pushing bid prices down,” a major Shanghai-based trader informed.SE Asian buyers are bidding at $345-350/t FOB. Vietnam’s importers were sure that Chinese prices bottomed last week, “so now nobody wants to risk and decrease bids,” a large Vietnamese re-roller commented. However, the Middle East buyers think that prices from China have already dipped to the lowest level. As a result, there were deals at $390-395/t CFR ($355-360/t FOB) late last week. Offers are mostly at $390-400/t CFR ($355-365/t FOB) there now. This week, Chengde Steel is ready to sell to the UAE even at $385/t CFR ($350/t FOB). The Arabian market insiders mostly think that this level will become a bottom in the near future. Local prices have remained mostly unchanged over the period under review. As a result, Chinese mills are aimed to achieve deals inside the country, as “prices here are much better,” a local trader infornmed. He also noted that it is not difficult to sell HRC at RMB 2,500/t ($403/t) EXW in the local market now.