On March 31, SteelOrbis reported Chinese offers on flats to Chile either widening from the previous range or shifting downward on lower overseas offers and limited buying in the destination market due to market uncertainty. Prices were reported at $505-515/mt CFR for HRC, $570-580/mt CFR for CRC, $630-650/mt CFR for HDG, and $510-520/mt CFR for heavy plate.
For the week ended April 7, sources are reporting to SteelOrbis that Chinese offer prices on flat steel products have once again shifted down. HRC is at $500-510/mt CFR, CRC at $550-565/mt CFR, and HDG at $615-625/mt CFR. In comparison to the end of March offers, HRC decreased by $5/mt, CRC declined by $20/mt on the bottom of the range and $15/mt from the top of the range, and HDG declined by $15/on the bottom of the range and $25/mt from the top of the range.
According to sources, the latest Chinese indicators including a slump in the iron ore market and declining domestic finished steel prices, point to the potential of further decreases. However, several sources are also advocating the possibility of a bottom having been reached and new June deliveries to be announced at higher prices. Those expressing the possible bottom of Chinese offers mention the resilience displayed in the global scrap market through the week and recent announcements of capital expenditures that may boost the Chinese economy along with the recent jump in coking coal prices.