It is reported that Chinese hot rolled steel coil price resume its decrease this week on high inventories and expectation of oversupply since April.
On Shanghai market, commercial 4.75mm to 12mm*1500mm HRC goes at CNY 3120 per tonne down by CNY 180 per tonne WoW. That for 4.75mm to 12mm*1800mm goes at CNY 3180 per tonne a decrease of CNY 140 per tonne.
As forecast, HRC price has chosen a downward breakthrough following frequent fluctuations between CNY 3250 per tonne to CNY 3360 per tonne. Taking Shanghai price for commercial 4.75mm to 12mm*1500mm HRC as benchmark, it is going to approach CNY 3000 per tonne support. There is still likelihood of rebound if prices remain above CNY 3000 per tonne. While a break of CNY 3000 per tonne will bring deeper fall to retest CNY 2800 per tonne support instead
Export market is quiet and prevailing offers are at USD 460 per tonne to USD 500 per tonne FOB. There is few transaction at moment and traders feel disappointed that there remains to be no export rebate for HRC exports.
With regards imports, quotations for CIS origin HRC are at USD 370 per tonne to USD 390 per tonne CFR. Some traders have inked contracts at about USD 370 per tonne CFR.