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|Chinese Mills to End Negotiations on HR Coils As Early As This or Next Week|
|= For September shipment =|
Chinese mills including Benxi Iron & Steel and Rizhao Steel seem to end negotiations on hot-rolled (HR) steel coils as early as this week or next week for September shipment. Their latest offer prices are reported to be $520-530 CFR, which are raised by $30 from the level of $490 CFR for August shipment.|
Their offer prices are raised but cases of the conclusion of contracts are almost not heard. However, they show no sign to fluster. They raise their prices without reducing offer prices when their offer validity expires.
As China's domestic market prices of HR coils continue to rise even starting in July, they are able to divert products to the domestic market even if they are unable to conclude export contracts. Therefore, they are seen to be unnecessary to lower their export prices. Chinese mills will commence export negotiations for October shipment from early August but if China's domestic market prices of HR coils maintain an upward trend, they are seen again to repeat an increase in prices with weekly offer validity.
Chinese mills' export quantity to Korea is likely to be falling. It seems to be because customers in Korea are unable to follow Chinese mills' markups. Therefore, domestic supply of POSCO and Hyundai Steel is seen to be increasing, and their export offensive is weakening. Once, they are reported to have proceeded with negotiations at the price level below Chinese mills' offer prices but such stance of them is now not seen.
Attention is paid to how much Chinese mills will increase their export prices. A Japanese blast furnace mill source is observing that it will be of no matter while China's domestic prices of HR coils are rising. When distributors' inventory of HR coils in China increases, it is concerned about a collapse in prices but such inventory seems to be at a low level. It becomes a concern from October onward when it enters the off-demand season.
|last modified : Tue 01 Aug, 2017 [09:34]|