Chinese Steel Exporters Have Held Offer Prices Steady Despite Worries

Chinese steel exporters have held offer prices steady despite worries of a drop in market prices on the back of the debt crisis in the USA and Europe. "We are maintaining the export offer price flat although steel futures have seen a sharp decrease in recent days, " a Shanghai-based trader told MB Spot market prices are largely unchanged, however, except for a small drop in longs. Consequently, exporters are in no hurry to adjust their offers. Base export offers for commercial 4.5-12mm-thick hot rolled coil with boron are at $700-705 per tonne fob, commercial 1.0mm-thick cold rolled coil is at $760 per tonne fob, while commercial plate is at $700-710fob, flat from last week. There have already been transactions at these prices, with some steel mills being fully booked at lower prices, according to traders. "Major producers have no allocation for September shipment, so there is no reason for them to lower their prices, " a second trader noted. Overseas customers will wait before they decide to place orders, while some buyers are trying to bid down prices so that they can get cheaper material. "A South American customer is bidding at $740-745 per tonne fob as a base for cold rolled coil, " a Zhejiang-based exporter said, adding that he will not trade at that price for now. The market is waiting for Baosteel's September prices to give it direction. Source: metalbulletin.com