Given the market uncertainty into late September and possibility of lower offer prices, Chilean buyers of ex-China flat steel are reportedly delaying purchase decisions until the second week in October.
On September 18, SteelOrbis reported ex-China offers on flat steel to Chile for HRC at $610-620/mt CFR, CRC at $640-650/mt CFR, and HDG at $725-735/mt CFR.
According to sources, the last flat steel offers prior to the ongoing week-long Chinese holiday to Chile were at $590-595/mt CFR for HRC, $635-645/mt for CRC, and $690-695/mt CFR for HDG. This range represents a decline of $20/mt from the bottom of the previously reported HRC range and $25/mt from the top of the same range. CRC offers declined $5/mt. HDG offers, on the other hand, suffered a deeper price erosion at $35/mt from the bottom of the previously reported range and $40/mt from the top of the previously reported range.
Negotiations are expected to resume after the holiday, although a source stated that the uncertainty is a little deeper than at other times. While some raw material prices have declined, “the decline has not been as drastic as some researchers had forecast and Chinese policies seem to be pointing at domestic investment and limitations on production of many products related to the steel industry on environmental standards. Reading prices upon their return is a little difficult right now.”