Chinese prices of hot rolled coil exports to Europe are close to bottoming out, market sources tell Kallanish. 

As reported, Chinese producers are reducing export prices every day without necessarily following movement of the dollar (see Kallanish 22 July). “With the latest quotations, the Chinese are below their cost of production and prices cannot fall any further,” a buyer comments. Another source says: “It feels like Chinese steelmakers are panicking. They keep producing at full capacity and their market is not absorbing all that material.”

Some quotations for large buyers and for low quality HRC from China have gone to as low as €315-320/tonne ($348-354/t) cif Italy. But higher qualities are also sold by some traders at $380-390/t cif Italy. Traders are also offering very low thickness HRC from Taiwan but material is expensive due to the high transport costs.

Iranian HRC is sold at €340/t cif Italy to larger buyers and €350-360/t to smaller buyers, sources suggest.