It is reported that Construction steel prices have witnessed substantial rebound in China on CISA efforts to stabilize the steel market. CISA held a conference in Beijing last weekend and major steel makers have agreed to stop sales at low price level.

In Shanghai, HRB335 20mm rebar is being quoted at CNY 3320 per tonne to CNY 3330 per tonne; HRB400 grade material is being quoted at CNY 3290 per tonne to CNY 3310 per tonne up by CNY 150 per tonne from last Friday. That for commercial wire rod jumps by CNY 250 per tonne to CNY 3350 per tonne to CNY 3360 per tonne and that for hi-speed material saw a great increase of CNY 190 per tonne to CNY 3380 per tonne.

Prevailing export offers remain at about USD 600 per tonne FOB and there are also lower levels between USD 580 per tonne to CNY 590 per tonne FOB. Quotation for wire rod goes at USD 610 per tonne to CNY 620 per tonne FOB.

China’s Jinan Steel Company has announced to reduce ex-work price.
 
 Steel rebar price was down by CNY 900 per tonne and that of HRB 335 with size of 16mm to 5mm was at CNY 750 per tonne. Price of HRB 400 was decreased by CNY 180 per tonne while price of medium plate decreased by CNY 700 per tonne.
 
 After the adjustment, price of medium plate with thickness of 20mm was being quoted at CNY 4,840 per tonne. And the price of heavy plate with thickness of 20mm was CNY 5,390 per tonne.

Bloomberg reported that China urged the US to avoid using protective measures against steel imports from the Asian nation.
 
 China Ministry of Commerce said “China’s steel companies are competing with foreign counterparts under an open market environment. There are no government subsidies and the government has taken several measures to limit steel exports. It said that China has paid attention to maintaining balance in the global steel market” as the world’s No 1 steel producer and consumer.”
 
 The US decided on July 17th to impose duties on USD 200 million of steel pipe imports from China, South Korea and Mexico after a ruling by the US International Trade Commission. As a result, Chinese exporters of light, rectangular piping face countervailing duties used to counter subsidies of as much as 200% of the price of the product, and anti dumping duties, which compensate for goods sold overseas at prices below those at home of as much as 265%.

It is reported that Chinese major stainless steel manufacturers have informed domestic customers this week of price reductions for October 2008 shipments of CR sheets.
 
 The price reductions are USD 382 per tonne by Taiyuan Iron & Steel Group Co and USD 309 per tonne by Ningbo Baoxin Stainless Steel Co, each for nickel based CR sheets. Both companies have a price reduction in effect of USD 147 per tonne for chromium based CR sheets. As a result, Ningbo Baoxin’s new prices after value added tax are USD 3,897 per tonne for nickel based products and USD 2,058 per tonne for chrome based products.
 
 China’s domestic stainless steel market in the Wuxi area is linked to the world’s nickel prices. The current market prices are lower by nearly USD 294 per tonne than what the nation’s stainless steel majors charge for domestic shipments. Still, stainless steel stocks in the Wuxi area stand at a flat level of 120,000 tonnes in total, with no change since July.
 
 In late September, Japan’s stainless steel producers got Chinese customers’ bids of USD 3,200 to USD 3,300 per tonne FOB for imports of nickel based CR sheets from Japan. Later, though, the bids were retracted due to violent fluctuations of the world’s nickel prices. At present, there are no bids from the Chinese customers who are marking time as a whole.
 
 As the Japanese steelmakers see it, assumable Chinese bids may be fairly close to USD 3,000 per tonne FOB. But the Japanese steelmakers have no idea of pushing their export negotiations at prices below USD 3,000 per tonne FOB, given their production with raw materials at a high level of prices.