Retrieved from Chinese Global News Digest
Export prices for Chinese cold-rolled coil and hot-dipped galvanized coil inclined over the past week following a surge in domestic and overseas demand, sources said.
Additionally, the exchange rate remained favourable for Chinese exporters who typically settle transactions in dollars, Fastmarkets understands.
The Chinese currency was pegged at 7.0919 yuan per $1 on May 12, compared with 7.069 yuan to $1 on May 6, the first working day after the country’s May 1-5 Labour Day holiday, according to China’s State Administration of Foreign Exchange.
Fastmarkets’ weekly price assessment for steel cold-rolled coil export, fob China was $450-455 per tonne on Tuesday, May 12, up by $10 per tonne on both ends from $440-445 per tonne on May 6.
Over the past week, a buyer in Vietnam booked a shipment of Chinese CRC at $455-460 per tonne fob China, however, the transaction could not be confirmed by the close of Fastmarkets’ pricing window and was excluded from the assessment.
A post-Labour Day holiday surge in domestic flat steel prices, including hot-rolled coil and CRC, pushed up mills’ asking prices for exports of the latter product, sources told Fastmarkets.
Domestic CRC demand from downstream industries has continued to improve because most companies are gradually increasing their production rates, a trader in Zhejiang said.
Flat steel prices are likely to have bottomed out in the near term after Indian mills sold large amounts of HRC to China and Southeast Asia earlier this month, the same trader added.
One Chinese importer was also heard to have booked South Korean CRC at $470 per tonne CFR China, sources said.
China produced 2.1 million automobile units in April 2020, up by 46.6% month on month and 2.3% higher from the same period in 2019, China Association of Automobile Manufacturers data shows.
Fastmarkets’ weekly domestic price assessment for steel cold-rolled coil domestic, delivered Eastern China was 3,740-3,810 yuan ($527-537) per tonne delivered on May 8, up by 110-130 yuan per tonne from 3,630-3,680 yuan on April 30.
Liaoning-based Benxi Iron & Steel issued an offer of $475 per tonne fob for July-shipment CRC on Tuesday, May 12, up by $5 per tonne from $470 per tonne on May 6.
Hot-dipped galvanized coil
Fastmarkets’ weekly price assessment for steel galvanized coil 1mm export, fob China was $510-515 per tonne on Tuesday, up by $5-10 per tonne from $500-510 per tonne on May 6.
“HDG demand from buyers in other Asian countries has noticeably improved recently,” a trader in Shanghai said.
During the week, several cargoes of the assessed product were sold at $510-515 per tonne fob China to Southeast and East Asia, Fastmarkets heard.
A mill in northern China was also reported to have sold 5,000-6,000 tonnes of June/July-shipment 80g zinc-coated HDG at $530 per tonne CFR Southeast Asia, sources said.
On Tuesday, Benxi Steel issued an offer of $550 per tonne fob for July shipments of its zero-spangle, 140g zinc-coated HDG, up by $10 per tonne from $540 per tonne on May 6 – the offer is equivalent to about $535 per tonne fob for the assessed 120g zinc-coated HDG.
Offers from other Chinese mills were at around $515-520 per tonne fob for the assessed product, sources said.
Despite a recovery in demand from Southeast and East Asia, a second Zhejiang-based trader said Chinese HDG suppliers were facing stiff competition from Turkish mills in the Middle East import market.