China Steels Reduce Hot Coil Offer to Less than US$ 900/t

Japanese import price of Chinese sheet steel keeps decreasing. Some Chinese makers reduce the hot rolled coil offer to less than US$ 900 per tonne, according to trading firm sources. Japanese buyers of coil centers and distributors are still reluctant to take the offer when they try to reduce the inventory under slower domestic demand. However, Japanese integrated steel makers concern the lower price could cool the domestic market when the higher yen rate would encourage the import. Japanese import price of Chinese sheet steel started to decrease in August after the hot coil price hit US$ 1,131 per tonne from Anshan Iron and Steel for August shipment. The price decreases when they seek offshore market during temporally stoppage of construction activity around Beijing due to Olympic game while the raw materials cost pressure peaked out for iron ore and coal. Chinese steel demand decreases even for automobile and appliances recently. Chinese steel makers try to improve the profitability by increasing export to take higher volume and price when Chinese government tries to fight inflation by limiting price increase. Japanese trading firms report Baotou Iron and Steel offers hot coil at FOB US$ 820 per tonne and Tangshan iron and Steel offers US$ 870 delivered to Japan. The price level is more than US$ 200 lower than the peak while the offer is for large lot order.