International Steel Prices
Chinese Steel Price Bubble Building?
Written by John Packard
September 5, 2017
Steel Market Update (SMU) received pricing information from China this morning along with a warning that China may be building a steel price bubble that will pop. The only question is when and how much damage will it do when it does.
Traders are complaining that the new Chinese numbers are too high to be able to get export orders.
For October production and November shipment, new prices stand at:
Hot Rolled Coil – USD595-600 metric ton (fob st lsd (2.3mm base) = $540-$544 per net ton on .0905” base HRC.
Hot Rolled Pickled & Oiled – +USD10/mt ($9 per net ton)
Cold Rolled Coil – USD620-630 metric ton fob st lsd (0.90mm base) = $562.45-$571.50 per net ton on .0354” base CRC.
Galvanized – USD680-685 metric ton fob st lsd (0.90mm base and 140gr coating) = $617-$621.40 per net ton on .0354” base GI.
Electrogalvanized – USD690 metric ton fob st lsd (0.90mm base) = $636 per net ton on .0354” base EG.
CRNGO – USD800/mt fob st lsd (order to be negotiated) = $726 per net ton.
The RMB has strengthened drastically, adding insult to injury on already hampered exports, reports SMU’s source.
John Packard
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