May 17, 2008

Chinese plate export prices cross USD 1000 FOB

It is reported that this week, export offers for Chinese steel products continue to move up despite flat or softening domestic prices.

Chinese steel makers have shoot up steel plate export price again on better overseas demand. The latest transaction price has exceeded USD 1000 per tonne FOB.

Domestic prices are largely unchanged this week. On Shanghai market, commercial 16mm plate by Yingkou Steel is being offered at CNY 6000 per tonne to CNY 6020 per tonne, 40mm low alloyed plate at CNY 6600 per tonne. By comparison, commodity grade 16mm plate by tier two steel makers are at CNY 5650 per tonne.

Export offer for commodity grade 15mm to 40mm plate has jumped to USD 1020 per tonne FOB to USD 1030 per tonne FOB a jump of USD 50 per tonne to USD 60 per tonne from early last week.

Tianjin Steel told Mysteel that it has been fully booked for April production and base price averages at USD 970 per tonne to USD 980 per tonne FOB. It normally sets unified export price every month while some steel mills just negotiate business case by case. In order to keep up with market pace, it has decided to wait for 2 to 3 weeks before setting quotations for May production.