It is reported that Chinese hot rolled steel exports are still slow and there is little transaction at moment. Less demand in low season and decrease in domestic market prices are believed to be major reasons.

    Domestic HRC prices are still on the decrease. On Shanghai market, commercial 4.75mm to 12mm HRC in 1500mm width is at CNY 5730 per tonne to CNY 5770 per tonne down by CNY 50 per tonne to CNY 60 per tonne WoW. That for 1800mm wide cargo is at CNY 6200 per tonne down CNY 20 per tonne from last week. However, price for commodity grade 2.75mm HRC remain flat at CNY 6250 per tonne.

    Export offers for commodity grade HRC are prevailing at USD 1020 per tonne FOB but there is few contracts this week as many are afraid of possible drop in the near future. At the same time, Tangshan stainless is said to be quoting commercial HRC at a much lower level of USD 980 per tonne FOB to USD 990 per tonne FOB which is believed to be a way of striving for export orders.

    Sources also mentioned that it is getting harder for steel makers to sell HRC to domestic market at such high level and they are actually more interest in exports. However, few steel mills are willing to lower price first.