After China’s local and export HRC prices dropped significantly at the beginning of last week, this week has started with positive sentiments in the Chinese HRC market on the back of the rebound in futures prices. Accordingly, ex-China export prices from big mills have moved sideways as sellers are watching further developments locally. However, Chinese traders, who last week were trying to sell at lower levels, have increased their prices by $25/mt and above.
At present, export offers for boron-added SS400 HRC given by major Chinese mills are at $680-700/mt FOB for August shipment, with a midpoint at $690/mt FOB, the same as last week. “The recent rises in iron ore prices have bolstered HRC prices, while market players are still cautious towards the prospects for the future market,” an international trader told SteelOrbis.
At the same time, the tradable level for SS400 HRC has been heard at $650-680/mt FOB, compared to $630-670/mt FOB last week. New Chinese offers from traders have increased to $680-685/mt CFR Vietnam, while the latest deals from Chinese traders selling a few position cargoes were reported at $650-660/mt CFR last week. Meanwhile, ex-China SAE1006 HRC offers have been heard at around $720/mt CFR, compared to $705-715/mt CFR last week.
During the given week, HRC prices in the Chinese domestic market have edged up amid the improved sentiments among market players. The rebounding HRC futures prices exerted a positive impact on the market. However, the hot weather may negatively affect the HRC market. It is thought that HRC prices in the Chinese domestic market may move sideways in the coming week.
Domestic HRC prices in China are at RMB 4,320-4,420/mt ($650-660/mt) ex-warehouse on June 28, with the average price level RMB 27/mt ($4/mt) higher as compared to June 21, according to SteelOrbis’ data.
As of June 28, HRC futures at the Shanghai Futures Exchange are standing at RMB 4,399/mt ($657/mt), rising by RMB 108/mt ($16.1/mt) or 2.5 percent since June 21.
$1 = RMB 6.693