Despite fluctuations and mixed sentiment in the Chinese steel and futures markets, offers to Chile have continued to increase. Sources report purchases despite offer increases as buyers are hedging to ensure inventory needs are met at the end of January and early February. Offers for the week ended December 9 increased $5-15/mt compared to offers reported early in the month.
For the week ended December 9, SteelOrbis reported prices delivered to Chile as follows: HRC at $510-515/mt CFR, CRC at $595-610/mt CFR, HDG at $640-665/mt CFR and heavy plate at $475-490 CFR.
Transaction activity is expected to decrease for the remainder of December into mid-January due to holidays and planned outages that will reduce production in both source and destination markets. A source commented, “Much market uncertainty as January approaches. Coking coal has softened, but Chinese seem to be adding steel production restrictions. For short-term planning, we have to accept some increases.”
Offers to Chile increased further this week and sources report HRC at $520-530/mt CFR, CRC at $600-615/mt CFR, HDG at $650-675/mt CFR, and heavy plate at $485-500/mt CFR, all offers delivered to major Chilean ports. The most recent offers reflect increases of $10-15/mt on HRC, $5/mt on CRC, and $10/mt on HDG and heavy plate.