It is reported that Chinese hot rolled steel coil price are largely unchanged this week. On Shanghai market, commercial 4.75mm to 12mm*1500mm HRC goes at CNY 3120 per tonne, flat with last week. That for 4.75mm to 12mm*1800mm goes at CNY 3160 per tonne a decrease of CNY 20 per tonne.

Taking Shanghai price for commercial 4.75mm to 12mm*1500mm HRC as benchmark; there will be rebound if it remains above CNY 3000 per tonne. While a decisive break of CNY 3000 per tonne will bring deeper fall to retest CNY 2800 per tonne support instead

Export market remains quiet and prevailing offers are at USD 480 per tonne FOB. There is little transaction as it is no competitive in the world steel market. There is not likely to be real improvement in the first half of 2009.

With regards imports, quotations for CIS origin HRC are at USD 370 per tonne to USD 385 per tonne CFR and those for cargoes from Taiwan and South Korea are at USD 390 per tonne to USD 410 per tonne CFR. Lowest transaction level is USD 370 per tonne CFR for CIS origin HRC and high level is about USD 395 per tonne to USD 400 per tonne CFR for material from POSCO.