After the sharper than expected drops through April, finished steel have begun to revive and again it is developments in China which are driving the change, most notably in flat-rolled products.
Deducting for local sales taxes, prices of hot-rolled coil (HRC) across the three Chinese markets MB covers have revived by close to $30/tonne over the past month to an average just under $400/t. Real-time margins have risen more sharply still given the ongoing erosion in Chinese steelmaking raw materials prices. We understand that Chinese finished and crude steel production cuts, following record-high volumes in April, have helped tighten the market and not only restored some operating profitability in basic HRC production but also the premium for CRC, which had been under severe pressure earlier in the year....