Chinese export offers for hot rolled coil have fallen sharply over the last week, following the downturn in the domestic spot market. Negative sentiment was enhanced by traders short selling cargos, Kallanish notes.

After Benxi led the way with cheap, small volume offers to Vietnam, other mills have now followed. The lowest offers are currently short sales from traders however, which are offering SAE1006B 2mm HRC below $495/tonne cfr Vietnam for shipments in late-April or May. One unconfirmed deal was reported as low as $480/t cfr. Prevailing deals were at $490-500/t cfr however, or around $480-490/t fob.

Exporters say the export market was showing signs of steadying on Friday, but that the market next week would depend on Chinese domestic prices. With domestic HRC prices slumping again on Friday afternoon, there seemed to be little hope of a rebound as mills are again coming under pressure to move material overseas.