SHANGHAI Chinas hot-rolled coil export prices held steady for a second week despite a softening domestic market.
Base export transaction prices for commercial-grade, boron-containing hot-rolled coil stood at $530 to $535 per tonne f.o.b. for October shipment on Aug. 26, unchanged since Aug. 16.
Base export offer prices for the same product were also flat in the same comparison, at $540 to $560 per tonne f.o.b. for October shipment.
Sentiment in the export market has been relatively firm, although local hot-rolled coil prices lost some ground last week, export sources told AMM sister publication Steel First.
"Mills are unlikely to cut their offer prices in anticipation of the approaching traditional peak season, although the current offers are regarded as unattractive to buyers," an export director at a mill in northern China said.
Few inquiries were received over the past week and no export deals were closed at the mill, the source added.
Most overseas buyers are likely to continue waiting on the sidelines for stronger market cues, and it will take some time before they accept higher prices as overseas demand hasnt completely revived due to the absence of some European buyers, market sources said.
"Under these circumstances, we have no plans to push our offers higher in the short term, but we would not consider lowering our prices to speed up sales either," an export source at an eastern Chinese mill said.
Meanwhile, Chinas domestic hot-rolled coil spot prices eased by 30 yuan ($5) per tonne in the eastern part of the country and by 10 yuan ($2) per tonne in northern China over the past week due to slowed transactions and a weak forward market. However, most market participants are expecting stronger demand and higher list prices in September, which could support pricing.
A version of this article was first published in AMM sister publication Steel First.