August 28, 2008

Chinese CR export offer surge again on high overseas price

It is reported that export quotation for Chinese cold rolled steel coil price has advanced substantially early this week due to surge in overseas market prices and Chinese steel producers are upbeat on future despite softening in home market.

While Chinese domestic price is believed to resumed increase following a period of adjustment. On Shanghai market, 1.0mm CR sheet by Anshan Steel goes at CNY 6500 per tonne, 1.0mm CR coil by Maanshan Steel at CNY 6330 per tonne.

According to traders offers for 1.0mm CR steel coils are prevailing at USD 950 per tonne to USD 960 per tonne FOB raise by USD 30 per tonne to USD 40 per tonne from last week.

Trading sources say CRC exports to USA and the EU are going up with the comeback of demand and remarkable price increase. At the same time, traders are weighing whether to take position again.

Supply are said to be quite tight and it is very difficult to get allocation even at the updated levels. Export prices seem to be on an upward trend and there is strong likelihood that there would be another increase of USD 100 per tonne in next three months, driven by the strength of international market prices and higher domestic level.

(Sourced from MySteel.net)