Following continuous fluctuations of futures HRC prices on persistent absence of clarity over demand recovery in China, Chinese hot-rolled coil (HRC) suppliers have managed to sell sizable volumes globally, not waiting for another “promised rise in prices”. Thus, more than 250,000 mt of mainly SS400 HRC for October shipment have been sold from China to different destinations this week, with bigger focus on the Middle East market.
More specifically, following several deals for ex-China SS400 at $585/mt CFR in UAE last week, another batch has changed hands at $580/mt CFR. Furthermore, a deal for 5,000 mt of ex-China SS400 have been reported in Oman at $580-585/mt CFR, while around 8,000-10,000 mt have been sold in Saudi Arabia at $575-579/mt CFR. Besides, according to sources, several deals have been also signed with Egyptian customers at $550-555/mt FOB, which translates to around $580/mt CFR and above.
At the same time, more deals have been reportedly signed with Indian buyers this week. “Around 30,000 mt in total of Chinese HRC were sold in India at $585/mt CFR this week,” an international trader told SteelOrbis.
Chinese suppliers have also succeeded in new sales to their traditional trade destination – Asia. In particular, several deals for approximately 5,000-7,000 mt of ex-China SS400 have been reportedly concluded in Vietnam at $545-549/mt CFR, which means deal prices have lost around $5/mt from initial offers reported later this week. Besides, following a deal for 2,000 mt at $565/mt CFR Pakistan, the material has changed hands at $563/mt CFR by the end of the week.
“One of the biggest Chinese mills alone has sold around 250,000 mt abroad in this round at $550-555/mt FOB globally. Plus, there were sales from traders for non-VAT materials,” a market insider told SteelOrbis.
Meanwhile, most export offers for boron added SS400 HRC from large Chinese mills have remained at $560-580/mt FOB, the same as at the beginning of this week. However, according to sources, the offer prices are likely to drop to $555-570/mt FOB next week, if futures keep following the current trend. Tradable level has remained unchanged as well, standing at $540-550/mt FOB.