China Steels Offer Lower Hot Coil for Japan Buyers

Chinese steel makers reduce the sheet steel offer price for Japanese buyers. Anshan Iron and Steel reduced the offer for September shipment and decreased the price again for October and the other Chinese makers also reduced the offer, according to Japanese sources. Some offer is less than C&F US$ 1,000 per tonne for hot rolled coil. However, the price is still higher for Japanese buyers when the yen rate is around 110 yen per US dollar and Tokyo Steel Manufacturing reduced the hot rolled coil price by 12,000 yen to 105,000 yen per tonne for September order. Anshan offered the price for October shipment to Japanese buyers in mid-August. The price is said to be C&F US$ 1,060-1,090 per tonne, which is US$ 40-70 lower than US$ 1,131 for August order. Chinese hot coil market is in adjustment phase after the heated price move due to higher iron ore and coal price. Some watchers see the adjustment is due to slower demand when construction activity is stopped in major cities during Beijing Olympic game while others see Chinese demand slows down fundamentally. With the slower demand, Chinese steel makers try to ship more for offshore market.