Wednesday, January 14, 2009

Chinese Steel Export Market Remains Sluggish

The Chinese steel export market remains sluggish. Many steel traders seem to be engaged in importing Hot Rolled Coils and the total volume in February is expected to be at least 300,000 tonnes from just Russia and Ukraine.

Meanwhile domestic steel prices continue to rebound. On the Shanghai market, commercial 4.75mm to 12mm*1500mm HRC was priced at CNY 3850 per tonne up by CNY 20-30per tonne from last Friday. The price for 4.75mm to 12mm*1800mm remains flat at CNY 3900 per tonne and for 2.75mm HRC was unchanged at CNY 4150 per tonne.

The export price for commercial HRC is at USD 550 to 570 per tonne FOB and most offers are between USD 550 and 560 per tonne. The increase is mainly due to the increase in the domestic market level. Export tonnage for January looks set to see a further drop.

HRC imports prices have seen a small increase on better demand. MMK is said to be offering its 08YU HRC at USD 470 per tonne CFR up by USD 20 - 30 per tonne. Prevailing quotations are at USD 450 - 460 per tonne CFR. ZAP of Ukraine is tagging at USD 440 per tonne CFR for 2.0mm and up HRC, March shipment.

Source: Steel Prices India

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