Chinese Steel Market last week continued to fall, as the steel demand in domestic market chilled on the coming of Lunar Chinese New Year and the chilling winter dampened the construction sites. Thereafter, some steel producers last week reduced export quotation in order to trigger the export shipments, as the offset of reduced local sales.

This week, the mills raise the export offers as local market heads up, which was followed by poor trading volume reported. As SteelHome knows, both mills and trading bodies are reporting few bookings, with hesitation from seaborne buyers.

By Wednesday, Chinese mills quote HRC mostly at the range of 650-670 dollars per ton (FOB). In general, the big-scaled mills keep their quotation firm, and the smaller ones have it raised slightly.

In terms of buyers, the falling scrap price in world market and the price cutbacks announced by Tangshan-located mills last week pull down the expectations of buyers.

According to SteelHome contacts, the mills and traders in January haven’t seen the recovery or even rise in steel exports. In view of sustaining steel cost and the recovery in non-China steel demand, SteelHome expects that Chinese steel market will warm up gradually after the Lunar Chinese New Year holiday.