China Suppliers lowered export prices
In mid-August, the devaluation of the yuan has stopped attempts of the Chinese producers to increase export prices to hire. Consumers in the past expressed dissatisfaction regarding the ill-founded recovery. Particularly well this was unfounded noticeable against the background of low demand and increased production. Now customers are demanding more concessions. On August 13 the devaluation was 3−3.5%. At the same amount reduces the cost of Chinese products.
Perhaps for Chinese suppliers source of problems is not one currency swings. The internal market and the prevailing situation as it does not cause positive emotions. Despite the suspension of production at the end of August, beginning of September, the market is unlikely to undergo major changes. Continued decline in the industrial and construction sector of China's economy. In July the results of the volume of consumption of steel products remain limited. Thus the cost of hire is back to square one.
In accordance with the tradition of China producing leaders in September will leave the August price of flat products. According to Hebei Iron & Steel prices decline slightly in the steel plate and hot rolled coil. Increase not seen. Manufacturers doubt improving the situation in the short term. It is believed Chinese analysts reached market stability now rests on the basis of the high cost of iron ore. If prices begin to decline, steel products again test pressure.
Consumers steel sheet imported from China, forced suppliers to reduce export quotations. The drop was from 5 to 10 USD / ton compared to the end Iavgustovskoy decade. Hot rolled coils are traded at the price of 310 USD / ton. A week earlier the price reached 315−320 USD / ton. How to say traders, Vietnamese and Indian offers show prices at the level of 300 USD / ton. Cold rolled coil production in China dropped the price to less than 350 USD / ton.
The Indian government, meanwhile, from mid-August has raised duties on imported rolled. As a result, the rate for the Russian and Chinese production increased by 12.5%. That does not stop the Chinese steelmakers. However, the main threat to Indian steelmakers serves Korean and Japanese rental of high quality. In these countries, an agreement with India on free trade. Accordingly, the amount of the fee for the Korean and Japanese manufacturers reaches only 1%.