Chinese export prices of hot rolled coil into Europe continue to fall in August, market sources tell Kallanish.

Chinese steel producers are reducing export prices every day without necessarily following movement of the dollar (see Kallanish 22 July). Some quotations for small buyers have now breached the level of €300/tonne ($343/t), sources suggest. A batch of 5,000t of S355 is offered at €298/t cif Italy with 90 days letter of credit. “This is a non-negotiated price,” one source clarifies and adds that there is still space for a further €2-3/t discount.

Base prices from local producers have fallen to the range €330-350/t depending of quantity and quality. “European producers’ prices will keep reducing the gap with imported material quotations. Local prices are approaching the ‘bar’ of €300/t,” another source comments.

Chinese HRC with boron is also offered in Southern Europe at $330/t cif Italy/Spain while traders in Europe are selling Iranian material into Italy at €330/t cif, sources suggest.