December 03, 2008

Chinese steel plate export transactions soften

It is reported that hot rolled steel plate export offers have been on the rise, but the transactions are described to be not ideal in face of current high price level. There have been fewer contracts, especially for shipments to Asia.

Quotations for commercial 15mm to 40mm plate by tier two steel makers are prevailing at USD 985 per tonne to 995 per tonne FOB, May production and June shipments. There has been a jump of USD 45 per tonne to USD 50 per tonne from those for April shipments. While offers by tier one steel mills have rise to USD 1080 per tonne to USD 1100 per tonne FOB. The swift rise is mainly driven by the strength of Chinese domestic market price and further increase in overseas market. However, most traders and steel mills disclose that buyers are not so interested to purchase at the updated levels.

According to its export department some tier two steel makers have further lowered the proportion of common carbon plate exports and emphasis is attached to the sales of ship plate and low alloyed plates. Tianjin Steel is exporting more plate under the grade of SM490 and S355JR or S355J2 so as to gain better profit. There is an extra of USD 25 per tonne to USD 30 per tonne for S355JR grade on the basis of S235JR.

Ship plate by tier two steel mills are being tagged at USD 1140 per tonne to USD 1160 per tonne FOB as base for 14mm to 25mm thickness in 2.5 meter width and 8 meter length. While those by tier one producers are well above USD 1200 per tonne FOB as base Price for 6mm to 8mm ship plate even have jumped to around USD 1400 per tonne FOB.

(Sourced from MySteel.net)