China books 300,000 mt of import HRC, leading to bullish mood in Asia

Friday, 08 May 2020 17:44:18 (GMT+3)   |   Shanghai
       

China has become the main sales destination for imported HRC in Asia and in the world over the past two weeks. The increase in local HRC prices in the Chinese domestic market has allowed suppliers to increase prices in fresh import deals. As a result, HRC prices overall in Asia have increased and sentiments have improved.

India still main HRC supplier to China

Over the past ten days ending May 7, China has booked 250,000 mt of Indian HRC. As SteelOrbis reported earlier, two deals for 90,000-100,000 mt in total were signed at $380-385/mt CFR and $388/mt CFR to China last week. Other deals have been signed at $386-390/mt CFR, sources have said, adding that the most recent bookings done on Wednesday and Thursday were closed at “around $390/mt CFR,” a few major importers in China confirmed. As a result, in total 250,000 mt of Indian HRC have been sold in the range of $383-390/mt CFR China over the past 10 days.

All this tonnage is for June shipment. On Friday, May 8, one of the leading Indian mills announced an offer at $400/mt CFR China for July shipment, but no deals have been heard.

Deals done also for ex-Russia and ex-Taiwan coils

Also, there have been reports of a sale for 20,000-30,000 mt of HRC from Taiwan at $400-405/mt CFR China with sources saying that the price is closer to $400/mt CFR.

As SteelOrbis reported earlier, a booking of 20,000 mt of Russian coils has been done at $385/mt CFR China. Offers from Russia have increased to $390-395/mt CFR recently.

A South Korean exporter was offering at $405/mt CFR China in the middle of the week and sources have said that it has been possible to purchase at $400/mt CFR. Nevertheless, there has been no confirmation oof new transactions. “They [suppliers from South Korea] decided to wait, seeing prices reached $400/mt CFR (plus/minus $10/mt depending on source) and POSCO will come back next week,” a source told SteelOrbis.

Import HRC prices increase in Vietnam

After huge tonnages sold to China, most exporters have announced price increases for Asian customers. Offers for Indian SAE1006 have been heard at $400/mt CFR in Vietnam and even above. “There was a bid at $395/mt CFR today, but Indian mills did not reply,” a Vietnamese trader said. The previous offers for Indian coils were mostly at $390/mt CFR early this week. Offer prices from South Korea have increased to at least $410-415/mt CFR Vietnam.

“This week, demand in Vietnam was very weak and moods here were bad,” a Vietnam-based trader said. There has been information about a deal for ex-Russia HRC at $382/mt CFR Vietnam this week, but “it is impossible to get this price now,” another trader said.

 


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