August 28, 2008

Chinese plate export offers reach a new high

Mysteel has reported that export offers for steel plate have witnessed another jump and it has set record high price again. Current price level is believed to have reflected the domestic market price increase.

Quotations for commercial HR plate have risen to USD 930 per tonne FOB and the highest is USD 955 per tonne FOB for April shipment. The increase is almost across the board and some traders are surprised at such a swift rise.

A Shanghai based trader told Mysteel the steel makers have raised price again to achieve better profit than that from domestic market. There would be little sentiment for exports if prices are under USD 900 per tonne FOB.

Plate producers indicated that current export quotations are for May and June shipments and most of them are upbeat on the outlook. However, export volume has been on the decrease for months, taking into account higher and higher purchasing cost for overseas buyers. It is noticeable whether tonnage will drop further following this price lift.

(Sourced from MySteel.net)