SteelOrbis Shanghai
With the sharp decrease in domestic prices, the importers from other countries stopped accepting
China's export offer price increases. Furthermore, the beginning of summer holidays in
Europe and the rain season in
Southeast Asia has also led to a decline in demand. Therefore Chinese steel export offers began to regress.
Chinese medium
plate export offer level to South
Korea began to decrease in July after reaching $570-630/mt CFR. Some steel mills retained high offer levels unchanged, while others lowered their prices by about $15/mt due to their high inventories. However,
HRC offers have remained constant at $545-550/mt CFR.
On the other hand, the prices of all Chinese hot rolled and cold rolled coils to
Southeast Asia have descended. The export offer price of
CRC is around $650/mt CFR, dramatically down compared with the earlier prices above $700/mt, while that of >3 mm thick
HRC is $530-550/mt FOB, down $20-30 from earlier offers by large steel mills.
On the long products side, the export offers for Chinese common carbon
wire rod to South
Korea have seen a sharp decline since the end of the previous week. The price, which was hovering at $460-470/mt CFR in the beginning of July, decreased to $430/mt CFR (lading in August). The deal price of Chinese
rebar exported to South
Korea for June shipment was $440/mt CFR, and that for July shipment again went back to $420/mt CFR. The price decline directed South Korean
wire rod importers to wait and see.
In the last two weeks, the export prices of Chinese long products to
Southeast Asia decreased by $10-15/mt. Current
rebar offer level is $425-430/mt CFR, while that of mesh
wire rod is $450/mt CFR, and that of Q235
billet is $405-410/mt CFR (Vietnam /
Philippines), but the
trading volume is very little. At present, the buyers in
Southeast Asia are waiting for further decline in prices.
The export offers of Chinese Q235
billet to South
Korea is around $400/mt CFR, and that of 20MnSi is around $409-410/mt CFR, which have also decreased slightly.