Chinese HRC exporters decide to lower prices as local market softens

Friday, 20 September 2019 15:10:34 (GMT+3)   |   Istanbul
       

Chinese hot rolled coil (HRC) producers have decided to cut export prices late this week as the situation in the local market has become worse due to lower demand, higher stocks and negative expectations for the rest of the year.

Offer prices for SS400 HRC from Chinese mills have been at $455-465/mt FOB, $5/mt below the level last week and early this week. There have been a few small sales at below $460/mt FOB, SteelOrbis has learned.

Average local prices in China have lost RMB 20/mt ($3/mt) today, September 20, declining to RMB 3,600-3,710/mt ($509-525/mt) ex-warehouse. The decrease has totalled RMB 80-90/mt ($11-13/mt) for the past week, according to the SteelOrbis data. One of the most important reasons for the worsening of sentiment has been the expected high production during winter, because of soft restrictions, as announced in draft plan by the government.


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