The Chinese domestic HRC market has posted an increase in the past week, though there has not been any obvious improvement in the volume of market transactions.
Product name | Specification | Category | Average price (RMB/mt) | Weekly change (RMB/mt) | Price ($/mt) |
HR | 5.75 mm x 1,500 mm | Q235B | 4,210 | +30 | 617 |
HR | 2.75 mm x 1,250 mm | Q235B | 4,330 | +17 | 635 |
As regards transactions, end-users and traders are mainly purchasing the minimum volumes required to meet their needs. With the current pessimism in the market, few large volume purchases are being concluded. The price rebound in recent days appears only temporary and lacks support. Meanwhile, due to the Chinese Dragon Boat Festival, traders have considered it would be better to make any price adjustments after the holiday. Meanwhile, with Baosteel, Angang Steel and Wuhan Iron and Steel all lowering their HRC prices, traders are pessimistic about the future.
After Baosteel announced its new price policy, Wuhan Iron and Steel (WISCO) and Angang Steel have also made downward adjustments to their prices for July. WISCO's HRC price is down by RMB 300/mt ($44/mt), and so the producer's new ex-mill price of SPHC 3.0 mm × 1,250 mm HRC is RMB 4,320/mt ($633/mt), its price of Q235 2.75 mm × 1,250mm HRC is RMB 4,240/mt ($622/mt), while its ex-mill price of Q235 5.5 mm × 1,500 mm HRC stands at RMB 4,200/mt ($616/mt). Angang Steel lowered its HRC price by RMB 350/mt ($51/mt). As a result, this producer's current ex-mill price of SPHC 3.1 mm × 1,000-1,199 mm low carbon steel is RMB 3,860/mt ($566/mt), with its price of Q235 5.5 mm × 1,500 mm common carbon HRC at RMB 3,720/mt ($545/mt). All the above prices do not include 17 percent VAT and are effective from July 1.
Generally speaking, despite the small rebound in the Chinese HRC market, most market players lack optimism as regards the prospects for the market in the coming period.