Hot Rolled Steel Coils : At the beginning of this week, Chinese steel mills ‘quotation for the standard hot rolled steel coils SS400 was $585-595 FOB, the price moved down to $580-585 FOB in the middle of the week and the trading range was $575-580 FOB. This week, there was a single transaction on the hot cut steel and the price is $577-585 FOB. The quotation of China Cold-rolled Resources was concentrated on $598-605 CIF Vietnam. The local market has been quiet recently and no firm deal has been heard. Most market participants estimate the short-term export market to remain under pressure due to the weak quarter and the exchange rate.
Rebars: The price of domestic markets have been held steady this week after the rising of last week. The export prices have remained roughly flat at $540-550 FOB. Some of the factories shipped to Hong Kong and Singapore at around $535-540 FOB theoretical. Qatar resources clinched $560 CFR in Hong Kong. Myanmar’s markets, the big negative market, are tepid and the price is said to remain at $570 CFR, A northern steel mill has a small turnover at this price.
The continued weakness of the RMB has prompted major domestic steel mills to cut export prices, so that Chinese cold rolled steel coils regain advantage and the recent transactions have improved. This week, the main dealing level of SPCC 1.0mm cold rolled steel coil is $605-610 FOB, down nearly $10 from last week. This week, the mainstream price of steel mill cold rolled steel coil is $615-625 FOB, the bottom is moved down by $5 from last week, which is $70-100 lower than other Asian countries. Late market bearish sentiment is strong and some traders say that the price of cold rolls will soon fall below $600 FOB.
Hot Dipped Galvanized Steel Coils : This week, the export prices of Chinese dipped galvanized steel coils remain stable, steel mills’ quotations fell compared to last week, but overseas customers mostly wait and see, few transactions. This week, the main steel mills’ quotations for SGCC 1.0mm Z120 zero spangle galvanized steel is concentrated at $680-690 FOB, down $5 from last week. The dealing price of Z120g dipped galvanized steel coils is $680 and Z140g is at $685-686 FOB, overseas customer’s counteroffer is at $670 FOB only. Due to the flexible delivery period, private steel mills have advantages over state-owned steel mills. At present, overseas demand is weak, the market is more bearish.
Hot Rolled Steel Plates: Due to strong domestic trade demand, the hot rolled steel plates export index rose slightly this week. South American customers were the most active this week, with about 2,700 tons of hot rolled steel plates trading at $615 FOB. Other steel mills are exported to South America on $623 FOB basis. This week’s export quotation is concentrated on $615-635 FOB, which is higher than last week’s $600-635. The steel mill, the lowest bidder of last week, halted its export bid this week after receiving a large order and raised the domestic ex-work price by 60 yuan. Some steel mills are still busy with domestic trade orders, which have led most market participants to remain optimistic about the price of hot rolled steel plates.
H Beams: Chinese H beams’ index was flat this week, but most steel mills remain optimistic about the aftermarket because the production cuts and domestic demand in Tangshan are good. This week, steel mills exported Japanese standard H beams steel to Southeast Asia at calculated price of $590 FOB theoretical, while most other steel mills kept their quotations unchanged and the mainstream price range is $580-600FOB. Or because domestic sales are good and supply is reduced, so there is no export quotation, the market is more optimistic about the future market.
Wire Rods: This week, the domestic mainstream price of alloy wire was slightly lower to $570-575FOB and some of the quotations remained at $580-585FOB. A few deals have been made on factories at $570 FOB, mainly for traders. The overall overseas demand is light and the customer’s price of intention is stable at around $560 FOB.
Square Bars: Domestic square bars exports are still basically stagnant. Domestic trade prices have been rising steadily due to production restrictions in the north and export reference prices have remained around $535-540 FOB. A small number of Chinese square billets were sold to Myanmar last week for about $535 FOB, but this price is not an advantage for other markets. Malaysia United Steel Resources traded at $520 FOB in Thailand last week, Vietnam resources offered $540 CFR Philippines and other countries for $530-535CFR Manila.
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