South Korean customers have recently increased their volumes of hot rolled coil (HRC) imports from China. Influenced by the Japanese earthquake and the increased prices from leading South Korean steelmaker POSCO, HRC prices from South Korea are set to increase strongly. Chinese HRC is relatively cheap, and so South Korean customers have started to import more HRC from China.
As one trader commented, "Recently, Chinese HRC contract volumes have increased massively, reaching 20,000-30,000 mt." According to traders, the contract price for boron-added HRC (SS400B) from major Chinese steelmakers is about $730/mt CFR South Korea, while the contract price from other steelmakers is about $710/mt CFR South Korea. The non-boron-added HRC contract price stands at about $800/mt CFR South Korea. All the above prices are April-May delivery.