Platts' Chinese steel export assessments remained unchanged this week as the domestic market's slight firming in prices halted mills willingness to accept lower export prices. Hot-rolled coil midpoint stood firm at $555/mt FOB Shanghai and rebar also remained steady at $565/mt FOB China.
Export prices for both hot-rolled coil and rebar appeared to have halted the downward trend in prices over the past few weeks and are holding fairly steady, industry sources told Platts.
Several sources said Chinese export prices had 'probably bottomed out' and that mills were feeling the pinch.
"Rebar prices at $500-550/mt (on FOB China basis) are too low. Bigger Chinese mills cannot achieve it. They will be losing money," one Anhui-based rebar producer told Platts and offered that "$600/mt should be a reasonable level."
A Tianjin steel trader dealing in both HRC and rebar agreed, adding that he had noticed the significantly smaller falls in international prices. "Chinese players tend to take cue from international prices," he said.
A Hangzhou-based flat-rolled trader, however, was not so optimistic stating that the "Market is very quiet. With the global economic crisis still looming, I think prices will continue to fall,". She added that she had "very little done" at $500-550/mt on FOB Shanghai basis this week but declined to give details. She was previously holding her offers at $550-600/mt.
A Jiangsu-based trader added that its a buyers' market. "They are putting pressure on prices. Prices have dropped below $600/mt a long time ago and I expect prices to fall even further," he told Platts.
Despite the apparent feeling of fairly steady Chinese export prices, the export trade for both Chinese hot-rolled coil and rebar remained extremely thin with the spot buying activity very low, market sources confirmed.
"I have enquiries but nothing firm as they were asking for extremely low level at $500-550/mt," sighed one Hebei-based rebar trader.
CHINESE DOMESTIC STEEL PRICE SLIGHTLY FIRMER
The slightly firmer Chinese domestic price appeared to be giving support to the notional export levels, a Beijing-based steel analyst said.
"Chinese domestic demand is mixed with prices in some areas seeing higher levels while the rest remaining in a downward trend. Overall, Chinese prices are firmer and in the absence of export trade, they will be the only factor which has direct impact on export prices," he added.
He had heard Chinese domestic HRC prices around Yuan 3,400($498)-3,500/mt ex plant Huabei this week, compared with Yuan 3,500/mt the previous week, while rebar at Yuan 3,700/mt versus Yuan 3,600/mt week on week.
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