Import HR coil price expectation created concern in China

Import HR coil price expectation created concern in China

The pronounced expectation of hot rolled coil prices ex-Ukraine will come down to a level of $280/mt FOB Black Sea has created worries amongst the participants in a steel association conference held in China, very recently. Such expectation is allegedly made by Midland Resources Shanghai. According to the steel trader, hot rolled coil prices could go as low as $280/mt FOB before they take losses. Gathering that brought the local steel traders and stockists together was a scene to the panic for such price level mentioned, mainly due to the fact that latest bookings of hot rolled coils have been concluded at $350/mt CFR level, over and above. On the Russian side, many Chinese buyers of Russian mills are reported to be following the negotiations between Minmetals and Severstal. The contract prices of these two companies first being the largest Chinese buyer and the latter a major Russian supplier, serve as a reference price for the rest of the industry. According to the very recent reports obtained by SteelOrbis, Severstal and Minmetals have just agreed for their new prices at $430-450/mt for hot rolled coils, and $530-550/mt for cold rolled coils on CFR basis. Such numbers may give relief to the Chinese industry as found not to be that low.