Chinese customers have been cautious in import hot rolled coil (HRC) purchases late last week and this week, but higher domestic HRC prices have allowed them to accept much higher prices for ex-Japan and ex-S. Korea coils. The volumes of bookings have been limited though. Vietnamese customers have also continued to be interested in purchases.
Ex-Japan HRC has been traded at $415/mt CFR China on average. The final volume in the deal in question is unknown at the time of publication, though, according to some sources, it is 10,000 mt, but some other market participants have said that it is 30,000 mt. Another deal for 20,000 mt of ex-S. Korea HRC has been done at $420-425/mt CFR this week. Import duty for ex-S. Korea HRC is 1.2 percent, lower than the percent for HRC of other origins. As SteelOrbis reported earlier, deals for Indian and Russian origin HRC were signed at $400-405/mt CFR in China last week.
Inquiries for Turkish HRC from Chinese traders have been heard at $415/mt CFR, $5/mt above last week, but mills have mostly refused to sell at this level.
New deals in China reflect the uptrend, sources have said, mentioning that most offers for Indian coils are starting from $425/mt CFR in China, as suppliers have seen demand at higher prices in Vietnam. “Some deals for HRC [from India] were at close to $430/mt CFR in Vietnam this week,” a trader told SteelOrbis. Early this week, some tonnages have been traded at $419-425/mt CFR, with at least three deals signed in this range, but the new deal price level has already reached $425-430/mt CFR, according to market sources. New offers from India have already reached $435/mt CFR Vietnam.
