December 03, 2008

Chinese HRC export offer likely to reach peak levels soon

It is reported that export offer for HR steel coil price is set to move up again in the next one or two weeks due to expected increase in domestic market and higher than expected overseas demand

On Shanghai market, price for commodity grade 4.75mm to 11.5mm*1500mm by Shagang is at CNY 5200 per tonne to CNY 5220 per tonne, that for 1800 wide at CNY 5500 per tonne to CNY 5520 per tonne. Low alloyed 1500mm wide HRC is being quoted at CNY 5450 per tonne which compares with CNY 5600 per tonne for 1800mm cargo. If we take Shanghai price for 4.75mm to 11.5mm*1500mm HRC as benchmark it is forecast to approach CNY 5500 per tonne.

As per report, tier two steel makers are offering commercial 4.5mm to 11.5mm HRC at USD 850 per tonne to USD 860 per tonne FOB but supply is tight. But traders also mentioned that it is not difficult to get tonnage May shipment as long as transaction price is up by USD 860 per ton FOB. The problem lies in whether the high price is sustainable and whether overseas buyers are willing to take material at the updated levels.

(Sourced from MySteel.net)