Chinese flat steel export offers correct due to position cargoes

The Chinese steel export levels maintained downtrend despite encouraging indications in Black Sea and Europe. The depression was regional centric as the demand from Korean, Japan and Vietnam remained sluggish.

Amidst slow demand stranded position cargoes was playing havoc with HRC being offered in the range of USD 710 per tonne to USD 715 per tonne CFR Vietnam unmatchable by any Chinese or other SE Asian mills

However HDG and CRC despite excess inventory and slow buying in domestic market had been able to show remarkable gains in Korean market wherein the import volume jumped from 20,000 tonnes to 34,000 tonnes for CRC from April to May with all the portending to notch higher figures in June.

FOB Main Chinese Port

Item Change
Rebar 0
Wire rod 0
HRC -10
Plates 0
CRC -10
HDG -10

Change is on June 3rd as compared to 27th May 2011
In USD per tonne

June production pruning as the power rationing catches up and plants go for unscheduled maintenance there will a likely shortfall of 600,000 t in HRC production probably bolstering the prices in coming weeks.

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