Posted on 08 Jun 2022
Prices of Chinese steel for export recovered somewhat this week on support of increased inquiries from overseas buyers and the recovery in domestic steel prices, Mysteel Global learned.
As of June 6, the export price of China-origin SS400 4.75mm hot-rolled coil (HRC) was assessed at $740/tonne FOB from North China's Tianjin port, higher by $10/t from one week earlier, while that of SPCC 1.0mm cold-rolled coil also gained $7/t on week to $818/t FOB from Tianjin port, according to Mysteel's survey.
"Overseas buyers were active in sending inquires to Chinese exporters last week, given the competitive prices in China, though actual transactions were still scarce, given the weak overall demand in the global market," a market source in Shanghai said.
Besides, Chinese steel mills were not willing to lower their offering prices further for export, as sentiment in the domestic market had improved thanks to the lifting of the COVID-related lockdown in Shanghai on June 1, and the central government's series measures to boost the development of downstream steel-consuming industries.
Meanwhile, some major provinces for steel production have asked local steel mills to reduce their crude steel production further this year, lending some support to domestic steel prices and driving up prices for export accordingly, Mysteel Global learned.
For example, China's national price of Q235 4.75mm HRC under Mysteel's assessment was at Yuan 4,922/tonne ($738/t) including the 13% VAT as of June 6, up for the sixth working day or higher by Yuan 49/t from one week before.
However, "we are not sure how long the growth (in export prices) will last, considering the really poor demand from overseas buyers," another market source in East China's Zhejiang said. She added that some exporters have quietly reduced their offering prices for foreign sales again as the higher prices were struggling to win buyers when overseas demand had not seen any significant improvement.
Source:Mysteel Global
