Posted on 27 Apr 2022
China's steel export prices have declined faster over the past week amid poorer sales, both at home and abroad, and the weakening Chinese Yuan against the US dollar. Overseas buyers held back buying, expecting prices to fall further in the near term, according to Mysteel's latest weekly report.
As of April 25, the Chinese export price of SS400 4.75mm hot-rolled coil (HRC) continued the downward slide it began on April 2, losing another $33/tonne on week to $820/t FOB from North China's Tianjin port.
The export price of SPCC 1.0mm cold-rolled coil (CRC) also fell by another $33/t on week to $901/t FOB from Tianjin port.
The strengthening US dollar against China's Yuan amid the recent hikes in US interest rates accelerated the retreat in dollar-denominated Chinese steel exports, some mill sources noted.
On April 25, the dollar-to-Yuan exchange rate stood at $1=Yuan 6.5594, up from $1=Yuan 6.3972 a week ago.
In the meantime, overseas steel buying has been slowing, partly due to reduced demand, but also due to the weakening price competitiveness of Chinese products against those of other major steel-supplying countries, Mysteel's weekly survey showed.
In the Middle East, for example, Chinese SAE1006 1.2mm HRC was offered at $1,020-1,050/t CFR Saudi Arabia last week, but India-origin products of the same grade and spec were offered at only $960-1,000/t CFR United Arab Emirates.
In the ASEAN region, a major market of China's steel exports, local steel buyers are more inclined to secure their needs from local steel producers rather than with Chinese imports. They deem Chinese steel products to still be "not so price competitive", though they note that prices for China-origin steel items have been falling recently.
Last week, Chinese SAE1006 HRC was heard being sold at $905/t CFR to Vietnam and South Korea, down $10-15/t on week, according to Mysteel's tracking.
ASEAN steel buyers are expecting Chinese steel export prices to fall further in the following few weeks due to uncertainties surrounding the country's steel trading and logistics caused by the wave of COVID-19 outbreaks, according to local sources.
Source:Mysteel Global
