Continuing its active trading performance, China's domestic hot rolled market saw an overall increase in prices during the past week. Influenced by the frequent price hikes announced by various mills, and also by the rumors of a possible increase in the export rebate for hot rolled products, the mood in the market has been relatively optimistic. Meanwhile, market inventory recorded a small reduction, with brisk commercial activity observed for low-priced materials.
Product name |
Specification |
Category |
Average price(RMB/mt) |
Weekly change (RMB/mt) |
Price ($/mt) |
HR |
5.75 mm x 1,500 mm |
Q235B |
3,497 |
+94 |
513 |
HR |
2.75 mm x 1,250 mm |
Q235B |
3,667 |
+107 |
538 |
With successive arrivals of new supplies from Angang, Benxi Steel and Rizhao Steel seen in some regional markets during the past week, China's leading markets currently have relatively abundant supplies of hot rolled materials. Nevertheless, traders state that so far they have not sensed much pressure coming from inventory.
On May 27, Lianyuan Steel hiked its HRC prices by RMB 350/mt ($51/mt) for June, with its new price for HRC of thickness > 3.5 mm now at RMB 3,650/mt ($535/mt).
On June 1, Shagang made an upward adjustment of RMB 220/mt ($32/mt) to its common carbon hot rolled prices for June, with its new price for 4.0-12.99 mm x 1,500 mm x C Q235 now at RMB 3,500/mt ($513/mt).
Meanwhile, it is heard that Hebei Steel Group will further raise its HRC prices by RMB 30-50/mt ($4-7/mt) for June, while Baosteel plans to increase its ex-factory prices of hot rolled products for July. As a result, due to rising cost prices, traders pushed up the market prices in the past week.
In the context of the climbing market levels, the trading performance in the domestic market has been quite active for low-priced materials throughout the past week, with a slight increase seen in the purchasing volume of end-side buyers. At present, based on the current ex-factory price levels announced by the various leading mills, the arrival costs of hot rolled materials for June shipment are generally calculated to be above the level of RMB 3,400/mt ($499/mt), thus providing strong support for the market and boosting the prices of spot supplies. In addition, it is heard that Hebei Steel and Baosteel are to hike their hot rolled prices soon, and this has strengthened market confidence to a certain extent in recent days. In this context, most traders are convinced that domestic hot rolled prices still have a certain amount of space for further ascension during the coming week.