China’s domestic steel market price mainly dropped slightly this week, while the export price remained basically stable. The offers of rebar were unchanged at $510 per tonne fob (theoretical weight). HRC was offered at $510 per tonne fob (actual weight). HDG was quoted at $600-610 per tonne fob (Z120).
At present, market participants are focusing on the new round production restriction and the landing of the infrastructure projects. It is expected that China’s domestic steel price will continue to rise slightly with fluctuation in August. As a result, China’s steel export does not have advantages considering the current high price. A trader from East China told SteelHome that he haven’t received inquiries for nearly two month. Market sentiments remained weak.
Some steel mills in China plans to import low-price billet from Iran and Brazil to reduce their production cost following the high iron ore price. It is reported that around 300,000 tons of billet and HBI from Iran and Brazil arrived at China’s main ports. Among them, billet from Iran was heard to be traded at $410-420 per tonne (CIF), which was equivalent to about 3,400 RMB (including 13% VAT). According to SteelHome survey, billet from Tangshan was sold at 3580 RMB (including 13% VAT) on the market, 200 RMB higher than the imported one.
Another traders from North China said that they intend to import low-cost billet and sell them domestically.
(To contact the reporter on this story: leo.ji@steelhome.cn or 86-555-2238932) |
