Sunday, May 3, 2009

China HRC Price Rise

Chinese domestic hot rolled steel coil prices have risen steadily this week. The prices increased some CNY 60 per tonne after the first day's CNY 8 per tonne drop. In the export and import market, the quiet performance remains unchanged and only few deals are seen. Most of the products that arrived this week were mainly contracts signed earlier.

Taking the Shanghai price for commercial 4.75mm to 12mm*1500mm HRC as a benchmark, the price is expected to remain weak if it remains below CNY 4000 per tonne. But the short term outlook looks bright and the price is expected to see an increase of CNY 100 to 200 per tonne as many new projects are starting to kick off and demand is gradually warming up.

The import market continued its soft performance this week with almost no offers in the market, while in the international market, the CIS has hiked its May delivered resources by USD 40 per tonne with the price posted at USD 350 per tonne to USD 400 per tonne FOB Black Sea.

As for exports, the market remains sluggish and the price posted at USD 460 to 480 per tonne, however, it is said one Chinese steel mill has signed a deal to deliver 12,000 tons of HRC to South Korea in May with the price of USD 439 per tonne.

Source: Steel Guru

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