Posted on 17 Aug 2022
Chinese steel export sales stayed weak this week as the depressed demand from overseas buyers was unabated and the export prices of China-origin steel products still deemed uncompetitive, Mysteel Global learned.
As of August 15, the export price of China-origin SS400 4.75mm hot-rolled coil (HRC) was assessed at $605/tonne FOB from North China's Tianjin port, reversing down $5/t on week after the prior week's rise, while that of SPCC 1.0mm cold-rolled coil also slipped by $5/t on week to reach $677/t FOB from Tianjin port, according to Mysteel's survey.
Last week Chinese exporters lowered their offering prices for global sales considering the sluggish demand in overseas markets, resulting in the on-week decreases. "Without any support from demand, export prices lost the impetus to keep strengthening," a market source in Shanghai said.
Although the volatility in prices meant some overseas buyers became active in sending inquiries to Chinese exporters, actual transactions were scarce. "The Asian steel market remains quiet, and many buyers in Southeast Asia are waiting for major local steel producers to post their list prices after Baoshan Steel cut its prices," he added.
Baoshan Iron & Steel (Baoshan Steel), the listed arm of the world's largest steelmaker China Baowu Steel Group, had announced on August 8 that it was lowering its list prices for carbon steel HRC by another Yuan 100/tonne ($14.7/t) for domestic sales in September after its earlier price cut of Yuan 200/t announced for this month's sales, as reported.
Besides, some Chinese steel mills and traders were not so keen on chasing sales globally as the prices of China-origin steel products were still relatively high elsewhere in Asia, despite the decrease this week, Mysteel Global noted.
Chinese domestic steel prices have been rangebound as demand from local end-users is being dented by this summer's scorching heat across much of the country.
As of August 15, the national price of Q235 4.75mm HRC, for example, was assessed by Mysteel at Yuan 4,123/t including the 13% VAT as of August 15, down Yuan 5/t from one week earlier.
Source:Mysteel Global
