China's lazy domestic steel market and the push for production by Chinese enterprises, which totaled 68 million tonnes in May, are setting the stage for increased exports. In January-April 2014, export shipments were already up 29 percent yoy to 25.87 million tons, according to the National Development and Reform Commission. Steel production, in turn, reached 2.7 percent YoY to 272 million tonnes.
More than 60 percent of China's exports are concentrated in the Asian region, which is putting pressure on India. Not surprising as Indian factories keep prices high. The current levels of orders for sheet steel are $ 540-550 per tonne from Chinese factories. However, prices for wide sheets are set by Ukraine with bids of $ 560-570 per tonne CFR.
Supply stability is observed in long products. The billet is planned to be offered at the level of 504-505 dollars per ton CFR from China. Wire and rod reservations were made at $ 527-530 per tonne CFR. HRC is offered at $ 535 per tonne.
The fittings, however, remain intact, provided they do business with Ukrainian enterprises at the level of $ 580-590 per ton. The main reason for this is that there are specific buyers who stick to Ukrainian material rather than trying to switch to Chinese. At the same time, Chinese suppliers could boost export sales thanks to an 8 percent drop in finished steel prices from January to April in the country.
Aggressive Chinese steel prices set the tone for the world
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Azovpromstal® 11 June 2014 г. 11:41 |
