December 02, 2008

Chinese HDG export offers on downward trend

It is reported that there have been less Chinese hot dipped galvanized steel export activities since early July as Chinese domestic market prices have seen evident drop in last two weeks and export offers are also softening.

Domestic market prices are still on the decrease. On Shanghai market, 1.0mm HDG by Anshan steel is being quoted at CNY 7400 per tonne that for 0.5mm HDG by private steel makers is at CNY 7580 per tonne down by CNY 60 per tonne and CNY 100 per tonne respectively from last Wednesday. The downward corrections are expected to spread into next month.

Export quotation for 1.0mm HDG Z120 by tier two steel mills is at USD 1130 per tonne to USD 1150 per tonne FOB. By comparison, offers by tier one steel makers are at around USD 1160 per tonne to USD 1170 per tonne FOB for 1.0 HDG Z120. Transaction prices are said to be USD 20 per tonne to USD 30 per tonne lower and steel makers are more willing to negotiate on export prices as long as there is real order.

(Sourced from MySteel.net)