According to Mr Meng Xinyi vice secretary of Party committee of Xingcheng Special Steel, member of CITIC, the company’s export has decreased to monthly 20,000 tons from the highest 40,000 tonnes of this year nearly a downslide of 50%.
 
 He said that “We are cutting production now with the range between 5% to 10% based on the orders’ size. He added that after two or three months when we assimilate the highly-priced resource bought earlier, we can use the low-priced goods. By that time we will see apparent drop in purchasing cost.

It is reported that there have been few construction steel exports in October on substantial price drop and weak overseas demand. Steel mills indicate that there probably would be a 70% decrease in export tonnage for November shipment.
 
 Domestic market prices continue to see some rebound. In Shanghai, HRB335 20mm rebar is being quoted at CNY 3420 per tonne to CNY 3430 per tonne; HRB400 grade material is being quoted at CNY 3510 per tonne to CNY 3540 per tonne up by CNY 200 per tonne from last Friday. That for commercial wire rod jumps by CNY 70 per tonne to CNY 3410 per tonne to CNY 3420 per tonne and that for hi-speed material saw an increase of CNY 60 per tonne to CNY 3430 per tonne to CNY 3450 per tonne.
 
 Prevailing export offer goes at USD 580 per tonne to CNY 600 per tonne FOB and there are also lower levels at USD 500 per tonne to CNY 550 per tonne FOB. Some are even quoting at USD 480 per tonne to CNY 500 per tonne FOB, however there is still not much order. Official quotations for Wire rod is about USD 600 per tonne FOB and real transaction price is negotiable.

Bloomberg reported that cash prices of iron ore imported by China fell by 11% to an almost two year low because of weaker demand from steelmakers.
 
 According to Beijing Antaike Information Development Co, prices at Qingdao, China’s biggest port handling iorn ore imports dropped by CNY 80 per tonne to CNY 640 per tonne in the week ended October 24th 2008, the lowest since November 2006.

It is reported that Chinese CRC export market remains quiet this week. The sluggish situation is expected to sustain for a period taking into account ongoing financial turmoil and an evident slowdown in global economy.

Domestic market price witness some rebound. On Shanghai market, 1.0mm CR sheet by Anshan steel goes at CNY 4530 per tonne up by CNY 70 per tonne from last Friday; 1.2mm to 2.0mm material at CNY 4430 per tonne an increase of CNY 50 per tonne. While that for 1.0 CR coil by Maanshan steel rebounded by CNY 130 per tonne to CNY 4180 per tonne.

Export offer for DC01 1.0mm CRC goes at USD 650 per tonne to CNY 700 per tonne FOB which compares with USD 700 per tonne FOB last week.