Metalsplace reported that there is speculation that China''s domestic market for HR coils has sunken to a second bottom. As a result, China's HR coil market is expected to indicate a slight fall for the present even if it comes down.
According to market sources, as to South Korea''s HR coil exports to China, it is uncertain whether POSCO will further reduce what the company charges for its Chinese deals. In South Korea, domestic users show discontent with POSCO lower export prices of HR coils than its domestic sales prices.
China's domestic market prices of steel products have fallen week after week since late February. In early March, they begun to head for a second bottom as the bottom had fallen out. Since late March, though, a fall in prices has become smaller and smaller, giving market participants that the market conditions are close to bottoming out.
In China, Baosteel Co Ltd told domestic customers last week that the company intends to reduce the HR coil price by CNY 200 per tonne for May shipments. This week, Wuhan Iron & Steel Group Corp is expected to inform domestic customers of its price terms of various steel products for May shipments. There are forecasts that Wisco will execute a price reduction of HR coils on a par with Baosteel's case.
Meanwhile, there is a possibility that Anshan Iron & Steel Group Corp will opt to keep its HR coil price unchanged for May shipments. For April shipments, Ansteel has a HR coil price reduction in effect for the equivalent of USD 80 per tonne to USD 429 per tonne which indicates a wide spread from what Baosteel charges for HR coils.