November 21, 2008

Chinese plates export prices increase last week

It is reported that export offers for steel plate have witnessed another jump last week and it has reached another record level.

Quotations for commercial HR plate have risen to USD 950 per tonne FOB up and the highest is USD 970 per tonne FOB for April shipment. Quotations for ship plate by tier one steel producer are all well above USD 1030 per tonne FOB as base and contract price is above USD 1000 per tonne FOB. An East China based producer has shoot up offer to USD 1100 per tonne FOB as base for all kinds of ship plates.

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 950 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)