Chinese hot rolled steel export offers are expected to see further decrease in the coming weeks.
Domestic HRC prices are still on the decrease. On Shanghai market, commercial 4.75mm to 12mm*1500mm HRC goes at CNY 5600 per ton to CNY 5630 per ton down by CNY 140 per ton from last week. That for 1800mm wide cargo goes at CNY 6100 per ton down by CNY 100 per ton WoW.
However, price for commodity grade 2.75mm HRC remain at CNY 6300 per ton.
Taking Shanghai price for commercial 4.75mm to 12mm*1500mm HRC as benchmark, the pressure of downward correction would sustain unless it could not exceed CNY 6000 per ton. In short term, it probably would keep fluctuating between CNY 5500 per ton to CNY 6000 per ton.
Export offers for commodity grade 5mm to 12mm HRC are prevailing at USD 980 per ton to USD 990 per ton FOB down from USD 1030 per ton FOB up in the first half of July. An East China based steel maker even has cut its offer by USD 50 per ton to USD 990 per ton to USD 1000 per ton FOB for shipments to South Korea.