Downfall for China's steel export offers

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.