Export steel prices in China stabilized after the holidays

Chinese steel export prices were largely stable both during and after the Labor Day holiday from April 30 to May 4, market sources said, noting that export sales were fairly calm.

As of May 5, the export price of 4.75mm (HRC) SS400 hot rolled coil of Chinese origin was $815 per tonne FOB from the port of Tianjin in northern China, unchanged from April 29, the last business day before the holiday.

On the other hand, the export price of 1.0mm SPCC Cold Rolled Coil (CRC) was $895/ton FOB from Tianjin Port as of May 5, down $6/ton since April 29, according to Mysteel estimates.

Compared to China, steel prices around the world, especially in regions where prices previously skyrocketed, fell rapidly over this period, according to Mysteel tracking.

For example, in Europe, where the previous round of global steel price increases began, the prevailing market price of S235JR, 2.5-8 mm HRC fell by $65-70 per tonne over the week to $1,290-1,300 per tonne in Northern Europe compared to China. The Labor Day holiday period, while in Southern Europe the price also fell by 45-50 dollars per tonne per week to 1250-1255 dollars per tonne.

At present, global buyers' interest in refills is low as, according to an analyst in Beijing, "they still have enough to consume from their previous purchase in March." “They expect steel prices to fall further due to weak demand,” he added.

He noted that global manufacturing operations, such as the automotive industry, have slowed due to high energy costs and shortages of materials for batteries and auto components caused by regional conflicts and the COVID-19 pandemic.

The sluggish trade in the international steel market also reflects the fact that many countries celebrate holidays such as May 1-10 in Russia and Eid al-Adha, a religious holiday observed by Muslims around the world on May 2-3 this year. according to Mistil tracking.

Conversely, Chinese steelmakers remain focused on fulfilling previously signed orders and therefore didn't feel the urgency to sell this month, according to an industry source in Shanghai. "That's why a lot of them are pretty firm on price support," she said.