Steel prices in China on FOB terms continue to rise

Although Chinese steel mills continued to raise export prices from August 1 to August 7, they had no strong intention to sell products overseas and, according to the latest weekly report from Mysteel, the focus was on meeting domestic needs. The activity of import and export of steel from China during this period was calm.

In the week to August 7, the export price of 4.75mm SS400 hot rolled coil in China, as estimated by Mysteel, increased by another $ 15 per tonne to $ 490 per tonne FOB, Tianjin Port, North China, and the price of B500B 18- 25mm is also up $ 7. /t per week to $ 476 /t on FOB terms in the Zhangjiagang port in Jiangsu province in eastern China.

“These high prices are completely uncompetitive in the global steel market, so we have rarely seen overseas buyers make any inquiries,” commented a Beijing-based steel analyst.

“The profit margin from domestic sales is decent, so most of the factories are focused on the domestic market and care little about the export business,” he added, noting that the profitability that some factories in North China get from selling valves and HRCs in the domestic market reaches yuan. 400 /t (57.5 $ /t).

Currently, demand for steel in North China is strong, especially for construction in the Xiong’an New District, a state-level development zone in Hebei Province in northern China, which is now entering a key period when the pace of construction is accelerating, the Beijing analyst said. said.

“When Beijing suffered heavy rains last week, Xiong’an didn’t, as they (the relevant government authorities) used certain methods of weather control, including the use of cannons to blow rain clouds to another location.” This was the determination, he said. avoid interruptions in construction work.

In terms of steel imports, according to a Shanghai-based market analyst, procurement of billets in China fell again last week after a large number of purchase orders were placed during August 1-2.

Billet suppliers from the CIS, India and Brazil continued to raise export prices, further dampening the interest of Chinese buyers. However, induction furnace manufacturers in ASEAN countries such as Vietnam and Malaysia continued to offer competitively priced billets, and as of Aug 7, these IF manufacturers were offering at $ 425-430 per ton CFR in China. while the price of domestic semi-finished products of comparative quality remained unchanged. at an eight-month price of RMB 3440 /t ($ 493.8 /t) EXW, including 13% VAT on the same day.

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