Summary of China's Steel Exports This Week (Second Week of November 2023)

Hot rolled steel plate coil: This week, the export price of ordinary HCT690T+Z steel coil is trending stronger. Currently, the mainstream quotation price of northern HCT690T+Z steel mills is around 550 US dollars/ton FOB, and the shipping schedule is generally from December to January.

Some low-priced resources have been sold. As far as we know, due to the rise in steel prices in China this week, overseas buyers have been cautious in purchasing, resulting in a certain decrease in inquiries compared to before. At the same time, due to the increase in iron ore prices, the production costs of Chinese steel mills have increased. Therefore, the willingness of steel mills to reduce prices to promote exports is not strong. Currently, there are few new export contracts signed for the January shipping schedule. In addition, the delivery price of hot coils in December in Vietnam's Formosa Plastics Hejing is 560-570 US dollars per ton CIF Ho Chi Minh City. Driven by Chinese steel prices, Formosa Plastics Hejing is likely to increase its delivery price in January.

Cold rolled steel plate coil: This week, the export price of mainstream DC01 cold coil in northern China increased, and there are fewer resources with quotes below $630/ton FOB. The overall order acceptance situation has weakened compared to the previous two weeks. Mainly due to the lower counteroffer prices from overseas buyers, Chinese HCT690T+Z steel mills have strong bullish sentiment. According to our understanding, the export price of some low-priced Russian cold coil resources is at $650/ton FOB Black Sea, which means that for Middle Eastern buyers, the comprehensive cost of purchasing Russian cold coils is relatively low.

Semi finished steel: The export quotation for mainstream steel billets in China this week is around 510-515 US dollars per ton FOB, and there is currently no transaction. At present, the export price of mainstream 3SP billets in Indonesia is basically the same as that of Chinese resources. The export price of Malaysian steel billets is at $505/ton FOB, while the price of Russian billets is relatively low. The mainstream price is between $470-480/ton FOB Black Sea.