Export quotations of flat steel products from Chinese mills are on the verge of falling down pressured by stockists’ aggressive price cuts during the last two weeks. At the end of last week, mills’ prices for HRC were quoted to foreign buyers by $90-120/t higher than those of stockists. By the moment, Shagang Group has already reduced HRC prices by $20/t compared to late April. Given decline in iron ore prices, rather high stocks and buyers’ wait-and-see mode, market participants agree that most producers in China will probably have to adjust prices downwards too.
In particular, prices for JIS G3101 SS400 HRC of Shagang Group have dropped to $685/t fob. However, its export quotations of JIS G3101 SS400 commercial quality plate and ship-building plate have stayed at $730/t fob and $740/t fob respectively. (source: metalexpert-group.com)