Demand for imported HRC has remained firm in China as the gap between local and import prices has been big enough. Suppliers from India, South Korea, Japan and Russia have been interested in sales to China and import offer prices have declined compared to previous contracts.
About 50,000 mt of Indian HRC has been sold to China at about $380-385/mt CFR, SteelOrbis has learned, though this has not been confirmed by the buyer’s side. At the same time, Chinese traders said that the latest booking from another Indian mill has been at about $385-390/mt CFR China. The previous tradable value for Indian coils in China was at $390/mt CFR. “We received offers at $390-395/mt CFR [from India], but bids are lower,” a Chinese trader said.
CIS-based suppliers have also been interested in sales, with 20,000 mt of Russian HRC traded to China at about $385/mt CFR over the past week.
A major South Korean steel producer, which previously sold sizable volumes to China, has come back and customers expect to get $380-385/mt CFR China, while two weeks ago ex-South Korea HRC was sold at $395-400/mt CFR, sources have said. Ex-Japan HRC offers have also declined to $390/mt CFR China. In total, up to 150,000 mt of HRC are being offered from South Korea and Japan to China at the moment.
Imports duty in China for HRC from India, Japan and Russia is three percent, while it is less than two percent for South Korean coils.
