Increase in exports to maintain firm HR market

SteelOrbis Shanghai Leading HR mills of China are getting many export orders, which will decrease the domestic supply. SteelOrbis learnt that Wuhan Steel's production volume for March export orders, including the projected orders, exceed 230,000 metric tons, while that for local agents is very small. Baotou Steel does not have many products to be sold in the local market because of its export orders and CR product stockpiling. Moreover, Baotou Steel stopped accepting orders for March HR products on February 23. Only one third of Shagang's products are for domestic sales in March. China's exports remain strong. Customers in Southeast Asia such as Vietnam accept the gradual increases in prices. Chinese traders' and steelmakers' medium and thick sheet/coil offers are firming at $400-410/mt FOB. Chinese hot rolled product prices may continue remaining firm during March for both domestic market and exports.