It is reported that domestic hot rolled steel prices rebounded this week and some traders believe that current level is quite close to the bottom.

On Shanghai market, commercial 4.75mm to 12mm*1500mm HRC goes at CNY 3000 per tonne to CNY 3050 per tonne up by CNY 80 per tonne to CNY 100 per tonne from last Friday. That for commodity grade 2.75mm HRC remains flat at CNY 3450 per tonne.

Taking Shanghai price for commercial 4.75mm to 12mm*1500mm HRC as benchmark, the rebound would sustain if it succeeds to remain above CNY 3000 per tonne. Otherwise downward correction would resume.

Export quotations for Q235 or SS400 HRC have dropped to USD 440 per tonne to USD 470 per tonne fob from USD 500 per tonne to USD 520 per tonne FOB in last week. The lift of 5% export tariff has led to decrease in export cost and quotations are reduced by steel makers to attract overseas buyers.