Chinese wire rod exporters hold quotations firm
2015-11-19 09:00:07 [Print]
BEIJING (Asian Metal) 19 Nov 15 - Influenced by the heavy losses, Chinese wire rod exporters are not willing to lower prices anymore and trying to hold quotations firm at the moment. The current price of chrome added low-carbon wire rod SAE1008 Φ6.5mm is USD275-285/t FOB China, the same as that of last week. Insiders predict that it is likely that the price will stay unchanged in the coming week.
A source from Shagang Steel tells Asian Metal that the current offer for chrome added low-carbon wire rod SAE1008 Φ6.5mm is USD285/t FOB Zhangjiagang Port, the same as that of last week.
According to the source, it is more profitable for Shagang Steel to sell materials in Chinese domestic market as the price of wire rod in China is as high as RMB2,050/t (USD321/t) VAT included. As a consequence, Shagang Steel increased the sales volume in Chinese domestic market. Its export volume for wire rod is around 100,000 tons per month at the moment, while it could reach 150,000 tons per month in Q3 of this year. Not shouldering much pressure from high stocks, the source thinks the export price of wire rod will stay firm in the short term.
An exporter in Tangshan, Hebei Province states that the offer for chrome added low-carbon wire rod SAE1008 Φ6.5mm from local steel mills is USD275/t CNF Tianjin Port, unchanged compared with that of last week.
Noted by the source, there is little activity in the market at the moment as overseas customers are still watching the market and waiting for a lower price. His export volume is around 50,000 tons per month at present, while it could reach 70,000-80,000 tons per month in Q3 of this year, when the market performed better than it does at the moment. In his opinion, steel mills are bearing heavy losses and can hardly cut prices further and customers will be more reluctant to place orders seeing prices come down. As a consequence, he will hold quotations unchanged in the near future.
A source from Shagang Steel tells Asian Metal that the current offer for chrome added low-carbon wire rod SAE1008 Φ6.5mm is USD285/t FOB Zhangjiagang Port, the same as that of last week.
According to the source, it is more profitable for Shagang Steel to sell materials in Chinese domestic market as the price of wire rod in China is as high as RMB2,050/t (USD321/t) VAT included. As a consequence, Shagang Steel increased the sales volume in Chinese domestic market. Its export volume for wire rod is around 100,000 tons per month at the moment, while it could reach 150,000 tons per month in Q3 of this year. Not shouldering much pressure from high stocks, the source thinks the export price of wire rod will stay firm in the short term.
An exporter in Tangshan, Hebei Province states that the offer for chrome added low-carbon wire rod SAE1008 Φ6.5mm from local steel mills is USD275/t CNF Tianjin Port, unchanged compared with that of last week.
Noted by the source, there is little activity in the market at the moment as overseas customers are still watching the market and waiting for a lower price. His export volume is around 50,000 tons per month at present, while it could reach 70,000-80,000 tons per month in Q3 of this year, when the market performed better than it does at the moment. In his opinion, steel mills are bearing heavy losses and can hardly cut prices further and customers will be more reluctant to place orders seeing prices come down. As a consequence, he will hold quotations unchanged in the near future.
