Currently, CRNGO price is chaotic in China market especially when lots of inferior product is prevailing in the market.
In fact, China's non oriented electrical steel prices have continued soaring since October 2010, furthermore, the prices have ever reached USD 1,100 per tonne FOB during March to April 2011 period.
In addition, even steel product prices dropped in China in May 2011, the non oriented electrical steel price remained firm. Therefore, lots of Chinese steel mills have turned to produce non oriented electrical steel products. Consequently, it has led to oversupply.
At the same time, Chinese government's tight monetary policy has forced mills to sell inventory of non oriented electrical steel with low prices. It's said that Chinese electric appliance manufactures’ tender prices of non oriented electrical steel in July have dropped sharply to USD 700 per tonne FOB.
Affected by these factors, Nippon Steel has decided to postpone July’s export quotes and the company may resume the deals in August 2011. (sourced Yieh)