Posted on 21 Nov 2008
HRC export prices likely to rebound in China
Domestic hot rolled steel tariff improved during current week. Many traders tend to believe that current prices are at their bottom levels. In Shanghai, commercial grade 4.75 mm to 12 mm with 1500 mm width HRC is priced at 3000 Chinese yuan per ton to 3050 Chinese yuan per ton. These prices are 80 Chinese yuan per ton to 100 Chinese yuan per ton higher than previous week. Taking Shanghai prices as benchmark, it is expected that the rebound shall stay if it succeeds to be equal to or higher than 3000 Chinese yuan per ton. Otherwise, negative corrections shall prevail. Quotations for Q2 35 or SS 400 HRC dropped to US$440 per ton to US$470 per ton FOB from US$500 per ton to US$520 per ton FOB observed last week. Removal of 5% export tariff led to falling export costs and quotations were reduced by steel manufacturers in an attempt to attract international customers.
