Ex-China offers for flat products to Chile increased towards the end of week ended November 18. At that point they were heard at the following ranges: HRC at $495-500/mt CFR, CRC at $550-570 CFR, HDG at $630-640 CFR, and heavy plate at $460-470/mt CFR. These offers reflected a considerable increase of $20-30/mt on HRC, $5-10/mt on CRC, $20-30/mt on HDG, and $30-35/mt on heavy plate compared to offers earlier that same week.
For the week ended November 25, despite the fluctuations in the Chinese futures market and market uncertainty in regards raw material price direction, offer ranges to Chile were heard to have shifted up $5-10/mt across all flat selections. Given the coking coal stand-off between buyers and sellers in China, Chinese authorities discussing reinstating mining operations to 330 days/year from the reduced 276 day/year schedule, and slight Chinese domestic market price declines, Chilean traders were expecting softer numbers but reduced buying activity through the week as offer prices increased. The price increase was seen as too immediate and inconsistent with the market fluctuations. By mid-week, offer prices had dipped down to previous levels.
Given Chile’s dependence on flat imports, the recent announcement of Brazilian price increases on flats, overall global price increases on raw and finished steel goods, some buyers inability to postpone purchases and continued market optimism, offers ex-China to Chile began creeping up again since late last week and are now being heard for HRC at $495-505 CFR, CRC at $560-580/mt CFR, HDG at $630-645/mt CFR, and heavy plate at $460-475/mt CFR. These offers reflect the range widening on the top end by $5/mt for HRC, HDG and heavy plate and an increase of $10/mt for CRC.