December 02, 2008

Chinese steel plate export price at a high level in May

It is reported that steel plate export market is still quite strong in China and prices are expected to keep at a high level in May2008. Mysteel believes that the strong demand and high cost are bolstering the upward trend and it is not going to alter in the short term.

Chinese domestic plate price is always edging up steadily, though by small range. On Shanghai market, 16mm plate by Yingkou Steel is being quoted at CNY 6430 per tonne which compares with CNY 6200 per tonne for similar products by tier two producers. Low alloyed 40mm plate goes at CNY 6950 per tonne.

Quotations for commercial plate by tier two steel makers are at about USD 1100 per tonne FOB up by USD 20 per tonne than late April 2008. By comparison, that by tier one steel producer is around USD 1160 to USD 1180 per tonne FOB.

Tianjin Steel indicated that it is quoting ship plate at USD 1180 to USD 1190 per tonne FOB for July shipment. Most shipments are destined for South Korea and the EU.

Currently, ship plate and high end plates account for most part of steel exports from China due to much higher profits. Ship plate by tier two steel makers are being offered at USD 1180 per tonne to USD 1250 per tonne FOB, while that by tier one producer is at USD 1280 to USD 1320 per tonne FOB.

A Jiangsu based major steel maker told Mysteel that it has concluded 50,000 tonnes ship plate exports to South Korea at USD 1250 per tonne FOB as base price July shipment.

Though transaction is not ideal, steel makers are still confident that prices would continue to go up.

(Sourced from Mysteel.net)