Posted on 20 Oct 2021
China’s steel export market remained tepid last week, even though the price gaps between Chinese sellers and their major competitors narrowed, according to Mysteel’s latest weekly report. By contrast, Chinese interest in imports, especially those of wire rod, became more active, trader sources say.
Export prices of Chinese steel reversed down last week, with that for SS400 4.75mm hot-rolled coil (HRC) shrinking by $8/tonne on week to $931/t FOB from North China’s Tianjin port as of October 15, according to Mysteel’s assessment.
The SPCC 1.0mm cold-rolled coil (CRC) export price also reversed down $5/t on week to $1,026/t FOB from Tianjin port as of the same day, according to Mysteel.
In comparison, the export prices for steel offered by China’s major competitors strengthened last week, with exporters in India, for example, raising their prices in response to tightening supplies of local coal.
The offer price of Indian-origin HRC of the same SS400 grade, for example, increased $10/t on week to $840/t FOB from India as of October 15, an Indian industry source confirmed.
International prices moving in the opposite direction helped to narrow the price gap between Chinese exporters and their competitors, but overall export business remained very weak.
“The (Chinese) prices are still unsuitable, and the demand is weakening too, with the approaching winter,” a steel exporter based in East China commented.
But while export demand for Chinese steel stayed poor last week, interest among Chinese traders and end-users in steel imports was positive, especially imports of wire rod, sources said. This reflects tightening domestic supplies and higher prices of longs as a consequence of industrial power constraints, with the operations of electric-arc-furnace makers and steel re-rollers being especially impacted.
Last week, offer prices of wire rods from India, Turkey, Indonesia and Vietnam ranged between $720-820/t CFR China, a spread which allowed Chinese importers to enjoy high profit margins. By comparison, as of October 15 the average domestic price of HPB300 8mm stood at a five-month high of Yuan 6,130/t ($956.3/t) including the 13% VAT, according to Mysteel’s assessment.
Source:Mysteel Global
