Export quotation of Chinese HRC to Korea to increase

Friday, 06 Nov 2009

It is reported that Chinese steelmakers are likely to lift their export quotations of HRC shipped to South Korea in December 2009 to January 2010 by USD 10 per tonne to USD 20 per tonne.

As reported, Chinese tier one mills will offer USD 500 per tonne CFR for November to December delivery this week while tier two plants to provide USD 480 per tonne to USD 490 per tonne for the same period.

Industry insiders noted that "Export quotation of rerolling grade HRC by Chinese tier one plant may be posted at USD 520 per tonne to USD 530 per tonne CFR. Yet, South Korean CRC producers will still hold a wait and see attitude as for China's frequent price ups and downs. However, POSCO HRC supply has revived to its normal level. Hence it will enlarge HRC import from Japan and China during this November to December.”

Insiders figured that "China's HRC export quotation will lose competitiveness if it climbs up to above USD 520 per tonne. As a result, South Korea import from China will rely on future market."

(Sourced from MySteel.net)
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