Posted on 09 May 2022
Chinese steel export prices were largely stable both during and after the Labour Day holiday of April 30-May 4, market sources said, pointing out that export sales were rather quiet.
As of May 5, the export price of China-origin SS400 4.75mm hot-rolled coil (HRC) was $815/tonne FOB from North China's Tianjin port, unchanged from April 29, the last working day prior to the holiday.
The export price of SPCC 1.0mm cold-rolled coil (CRC), on the other hand, was $895/t FOB from Tianjin port as of May 5, dipping slightly by $6/t from April 29, according to Mysteel's assessment.
In comparison to those in China, steel prices globally – especially in regions where prices had earlier climbed sky-high – fell quickly over the period, according to Mysteel's tracking.
For example, in Europe where the previous round of global steel price hikes had commenced, the prevailing market transaction price of S235JR, 2.5-8mm HRC had slumped by $65-70/t on week to $1,290-1,300/t in North Europe over China's Labour Day holiday period, while that in South Europe also fell $45-50/t on week to $1,250-1,255/t.
At present, the interest of global buyers in replenishment is low, as "they still have enough to consume after their previous buying in March," according to a Beijing-based analyst. "They are expecting steel prices to fall further because of the weak demand," he added.
Global manufacturing operations such as automaking have slowed due to the high energy costs and the shortages of battery materials and auto components caused by regional conflicts and the COVID-19 pandemic, he noted.
Slack trade in the international steel market also reflects the fact that many countries have been celebrating holiday breaks such as that over May 1-10 in Russia and Eid al-adha, the religious festival celebrated by Muslims worldwide over May 2-3 this year, according to Mysteel's tracking.
Conversely, Chinese steel producers remain focused on fulfilling previously signed orders and so felt no urgency in selling this month, according to a Shanghai-based industry source. "That's why many of them are rather firm in supporting prices," she said.
Source:Mysteel Global
