September 07, 2008

Chinese plates export prices remain firm

Steel plate export market is still quite strong in China and prices are expected to keep at a high level this month. The strong demand and high cost are bolstering the upward trend and it is not going to alter in the short term.

Chinese domestic plate price is always edging up steadily, though by small range. On Shanghai market, 16mm plate by Yingkou Steel is being quoted at CNY 6430 per tonne as compared with CNY 6200 per tonne for similar products by tier two producers. Low alloyed 40mm plate was at CNY 6950 per tonne.

Export quotation for commercial plate by tier two steel maker was at about USD 1130 per tonne to USD 1150 per tonne on FOB basis up by USD 30 per tonne to USD 40 per tonne than late April. By comparison, that by tier one steel producer is around USD 1180 per tonne to USD 1220 per tonne on FOB basis.

Though transaction is not ideal, steel makers are still confident that prices would continue to go up. Currently, ship plate and high end plates account for most part of steel exports from China due to much higher profits.

Ship plate by tier two steel makers are being offered at USD 1180 per tonne to USD 1250 per tonne on FOB basis while that by tier one producer is at USD 1280 per tonne to USD 1320 per tonne on FOB basis. A Jiangsu based major steel maker told Mysteel that it has concluded 50,000 tonnes ship plate exports to South Korea at USD 1250 per tonne on FOB basis as base price for 12mm to 40mm thickness in 2000mm to 4800mm width for July shipment. Tianjin Steel indicated that it is quoting ship plate at USD 1180 per tonne to USD 1190 per tonne on FOB basis for July shipment.

(Sourced from MySteel.net)