July 20, 2008

Chinese HR export offers likely to surge

It is reported that export offers for hot rolled coil remained quite strong this week despite softening in domestic market prices as many steel makers are fully booked.

On Shanghai market, commodity grade 4.75mm to 11.5mm HRC in 1500mm width by Shagang was being quoted at CNY 5200 per tonne and 4.75mm to 11.5mm in 1800mm width at CNY 5500 per tonne.

Export offers for commercial HRC were prevailing at USD 855 to USD 865 per tonne on FOB basis.

A Hebei based steel maker told Mysteel that its allocation for April production is fully booked and most are concluded at around USD 850 per tonne on FOB basis and it will not announce its price for May production until April 10th 2008. Another steel mill in Shandong Province was quoting commercial 4.5mm to 11.5mm HRC at USD 865 per tonne on FOB basis for April production and May shipment.

It indicates that overseas demand is strong enough to shoot up price to around USD 900 to USD 950 per tonne on FOB basis in April.

(Sourced from MySteel.net)