Chinese flats market has faced a downturn in activity amid coming holidays. In particular, almost all the exporters have withdrawn their offers, planning to implement an increase in early January in view of an expected recovery of demand from traders of SE Asia amid lowering stocks. Steel traders forecast export prices for Chinese flats will add about $20/t in the first half of January, supported by higher iron ore quotations and favorable domestic market.
Besides, an increase in other regional suppliers’ prices has also played into the hands of Chinese sellers. In particular, prices for HRC from some exporters from South Korea and Taiwan to Asian buyers are already by $10-15/t higher than for Chinese products. Thus, HRC of South Korean origin are available to buyers abroad at $650-685/t C&F against $650-655/t C&F in late December. Some sellers from Taiwan have decided not to wait for holidays to be over and raised export prices by $10-20/t in a week, to $630-650/t FOB ($650-680/t C&F to SE Asia). In particular, Chung Hung Steel will be offering February rolling of HRC abroad at $630-635/t FOB ($650-665/t C&F to SE Asia).
Market participants expect Russian suppliers will resume offers to Far East. New prices for HRC of February production will be varying within $680-690/t C&F, by $20-30/t higher than the latest offers of pipe-making HRC from China.
Trading in the domestic market is more active than in the import one. Suppliers keep lifting offers, citing higher production costs due to an increase in raw materials prices. Traders’ prices for flats have mostly gained $5/t in a week. Mills have been even more determined: the increase in prices for January rolling of flats has been $8-49/t at the exchange rate $1 = RMB 6.633 (RMB 50-328/t) depending on producer in a week.
Source: www.metalexpert-group.com