Exports support flat prices in China

SteelOrbis Shanghai Chinese export prices and sales are strong, which is also an important support for domestic prices despite bearish sales. The HR prices in Southeast Asia are still strong, and Chinese steel mills' export offers for CR sheet have reached $600/mt FOB. However, the rumors stating that the Chinese government might lower the export tax rebate made the steelmakers very prudent for their price quotations. Some steel mills decided not to accept new export orders. In the short run, the steelmakers' movements to hike the ex-factory prices reduced the orders from domestic traders, and drove up the market prices. In Shanghai market, there are plenty of 7.5 mm and thicker products, but not enough 3.0 mm HRC products. SteelOrbis learnt that Zhujiang Steel and Lianyuan Steel can only supply 40 percent of their ordinary thin product volume for April. In May, Taiyuan Steel will have overhaul works for approximately six days, which will affect 50,000 metric tons of output. Thin products' prices increased obviously last week thanks to the small quantity. Baotou and Handan Steel have plenty of cold rolled coils; therefore, their prices are stable. However, prices of Anshan and Benxi Steel are high due to their short supply. In the short term, the HR and CR prices are expected to see minor fluctuations in general.