On May 15, SteelOrbis reported mixed movements in Chinese offers of flat steel products to Chile. Offer ranges were reported for HRC at $450-460/mt CFR, CRC at $490-500/mt CFR, and HDG at $565-575/mt CFR
As domestic prices in China are reportedly increasing into this week, sources say Chinese traders have been increasing export offers and limiting offer periods in an effort to engage buyers at higher prices. According to sources, Chinese offers on flat steel products in Chile are now heard for HRC at $455-470/mt CFR, CRC at $495-510/mt CFR, and HDG at $570-585/mt CFR. This translates to an increase of $5/mt at the bottom of the range and $10/mt at the top of the range across all grades compared to last week. The lower offers are expected to disappear if strong Chinese domestic performance continues. Yet, a source noted, buyers are concerned as global raw material prices are at the moment stable but may decrease during the summer. High inventories in China may also limit the ability of prices to gain upward traction.
According to Latin American steel association Alacero, Chilean imports of steel products from China totaled approximately 349,000 mt in Q1 of 2017, compared to 257,618 mt in Q1 of 2016, reflecting an increase of 36 percent. By month, 156,000 mt was imported in January (45 percent) 2017, 89,000 mt (26 percent) in February and 104,000 mt (30 percent) in March. Chile imported 1.3 million mt overall in 2016, and at the present rate, imports are expected to trend stable this year.