Export prices for rolled metal in China continue to rise

Chinese steelmakers raised export prices for steel products during the third week last week, although domestic steel prices were declining, especially for long products.

Between 21 and 27 November, the export price of China's 4.75mm SS400 Hot Rolled Coil (HRC) increased by another $ 18 /t to $ 569 /t FOB at the North China port of Tianjin, with the increase being higher than the $ 15 /t rise ... observed in the previous study period.

Meanwhile, the price of 18-25mm B500B rebar also rose another $ 11 /t to $ 532 /t, up from a weekly rise of $ 10 /t from the previous week.

However, domestically, Mysteel estimates that the national price of 20mm HRB400 rebar, the impetus of the Chinese steel market, dropped another 61 yuan /tonne ($ 9.3 /tonne) over the week to 4,113 yuan /tonne, including 13% VAT from the beginning of the year. November 27. Market insiders blamed weakening demand, especially in Northeast China, where outdoor construction work was suspended after temperatures dropped to -20 degrees Celsius.

Supported by strong demand from China's auto and other manufacturing industries, the domestic price of 4.75mm HRC remained strong in 235 quarters, climbing 33 yuan a tonne to 4,138 yuan a tonne, including VAT, as of last Friday.

“Chinese steel mills are determined to support export prices. They are now selling products for shipment in March and are confident that by then domestic demand will be good, ”said an analyst from Beijing.

Nevertheless, after the continued rise in steel prices, most foreign buyers took a wait and see attitude. Last week, large orders were awarded only for HRC, while export business in other types of products was limited, Mysteel tracking showed.

"Although export prices for Chinese parchment have risen to very high levels, they remain competitive with competitors' products," said the Beijing analyst. Offers for GDS from the CIS countries exceeded $ 580 per ton on FOB Black Sea terms.

Meanwhile, in the past week, the enthusiasm of Chinese steel importers diminished due to lower domestic prices. The acceptable price level that Chinese buyers of imported billets would be willing to pay was around $ 480 per tonne CFR China, equivalent to $ 440-445 per tonne FOB Black Sea. The offers of the CIS countries as a whole amounted to 450-460 dollars per ton on FOB Black Sea terms.