Chinese HRC export offers further increase
It is reported that export offers for Chinese hot rolled steel coil have been further raised again despite dull domestic market. As a matter of fact, there have been transactions at the updated levels.

Domestic HRC prices see a little decrease. On Shanghai market, price for commercial 4.75mm to 12mm*1500mm HRC is at CNY 5830 per tonne to CNY 5850 per tonne down by CNY 20 per tonne to CNY 30 per tonne. That for 1800mm wide material remains at CNY 6200 per tonne. Q235 2.75mm HRC drop to CNY 6030 per tonne.

Export offers for commercial 4.75mm to 12mm HRC by tier two steel producers are prevailing at USD 1030 per tonne to USD 1040 per tonne FOB this week up by USD 10 per tonne to USD 20 per tonne from last week. There is an extra of USD 10 per tonne for S235JR and another USD 20 per tonne to USD 30 per tonne for those with requirement of silicon content under 0.03%

By comparison; those by tier one steel makers are at USD 1060 per tonne to USD 1100 per tonne FOB for commodity grade 3.0mm up. Some traders mentioned that there has been conclusion at USD 1070 per tonne FOB.

Lots of traders are still taking wait and see attitude since they are not confident whether such high price would sustain for a long period. They still wish to take material at about USD 980 per tonne FOB. However, some exporters continue to take position at USD 41020 per tonne to USD 1030 per tonne FOB and the delivery is expected to be July or early August. A certain famous trader is said to be holding position of Chinese commercial HRC at EUR 720 per tonne CFR European ports.

According to Mysteel under such circumstances, export prices are expected to move up further and the strength would sustain in June.