China's export prices continue to rise significantly, followed by foreign prices

A brief description of the international market

According to Mysteel, due to the increase in ocean freight, overseas suppliers have raised the price of billets exported to Southeast Asia. At the same time, strong construction demand and the reduction of steel bar inventory levels have led to optimistic short-term market sentiment. Last week, billets exported to Vietnam were quoted at CFR $472 / ton and CFR $475 / ton to Indonesia.For the billets imported from Southeast Asia, Mysteel mainly looks at the billets of 120-150mm 5SP grade sold to the Philippines. The price is assessed as USD 475-480 / ton, up usd 5 / ton from USD 470-475 / ton last Week, and the weekly price is increased USD 15-20 / ton from USD 455-465 / ton.

Export market overview

China's futures and spot markets both jumped earlier in the week as steel mills took orders.The domestic trade strong steel needs to give the market a certain confidence, the steel mill to export quotation continued to appear a substantial rise.

Tianjin Port hot volume: with the domestic trade price and the RMB exchange rate rising sharply, the hot volume export price has risen sharply this week.Domestic mainstream export steel mills quoted prices up around $10- $15 a ton from last week to $570- $580 a ton FOB.The average turnover price of hot coil export is around $550-555 / ton. Although the price has risen sharply, small batch orders have been signed in Pakistan, Bangladesh and some south Asian countries. At present, market participants are cautious about the future market and the order has been reduced slightly.

Zhangjiagang rebar: this week rebar due to the impact of domestic trade and exchange rate, also showing an upward trend, China's mainstream steel mills are now quoted at around $540- $550 / ton, up $15-20 / ton from last week.According to Mysteel market research, the current transaction price is around $520-525 / ton.With bids from Hong Kong and Singapore generally in the range of US $505-510 / ton, China's rebar exports are under great pressure in the short term.

Tianjin Port cold coil: The Chinese cold coil continued its strong rise this week, with steel mills quoted prices up us $10-15 / ton from last week to us $655-670 / ton.Because the steel mills have sold out the resources in January, foreign buyers are cautious about the future market, and the export orders began to weaken in this week. Under the dual support of the favorable exchange rate and domestic trade, the price is unlikely to fall in the short term.

Billet import: due to the domestic varieties of finished materials and the impact of the appreciation of the RMB, China's other side of the billet bid last week also appeared a substantial increase.According to Mysteel's investigation and understanding, the recent bid of some traders on the imported billet is about 470usd to 475 usd/ton, and the shipping date is January to February.In terms of overseas quotation, currently Vietnam offers 5SP billet at usd 480 / ton CFR China and CIS at USD 470 / ton (excluding 2% import duty).Chinese buyers are cautious and rarely sign up.