November 21, 2008

Chinese increase domestic steel export prices

It is reported that Chinese domestic steel prices are still in adjustment but export offers continue to edge up. Steel producers have shoot up export prices further so as to get better profit in face of such strong overseas demand. A large part of the export allocation for April production has been booked and good transactions are believed to be bolstering the strength of export price.

As per report Chinese construction steel prices have witnessed downward adjustment since last week. Price for HRB335 20mm rebar has dropped to CNY 4760 per tonne from CNY 4900 per tonne. While that for wire rod decreased by CNY 50 per tonne. Prices in Beijing and Guangzhou market have also softened.

While export offers for rebar and wire rod are still staying high levels. BS grade Rebar is being quoted at USD 830 per tonne to USD 840 per tonne FOB and contract price is at about USD 810 per tonne FOB. That for Wire rod is at USD 880 per tonne to USD 890 per tonne FOB and transactions are made at about USD 870 per tonne FOB.

Export tonnages do not see increase despite improvement in overseas market prices. The real demand is described to be flat in face of updated price levels. Whether there is further increase in export offer for Chinese depends on how domestic price change.