After sizeable volumes of imported HRC were sold to China last week, this week customers have continued bookings. A further price increase has been fixed in new deals. This uptick in China has pushed up the tradable value in Southeast Asia, though demand in Vietnam has remained low so far.
About 80,000 mt of Indian HRC have been sold in total to China this week at $450-455/mt CFR, while the latest deal was at the higher end of the range, sources have told SteelOrbis. As reported earlier, last week the majority of transactions were at $445/mt CFR on average, with up to 200,000 mt traded from India. Moreover, according to some sources, the workable level for Indian SAE1006 to China has increased further to $457-458/mt CFR late this week, though there has been no confirmation about contracts at this level so far. Offers from India have been starting from $460/mt CFR mostly.
A sizable cargo of HRC from S. Korea has been sold to China at $460/mt FOB, which is $468-470/mt CFR China. The price level was higher due to lower import duty for South Korean coils than for Indian coils, which is at three percent.
Still good demand in the domestic market in China has supported import bookings, though futures prices of HRC at Shanghai Futures Exchange have posted some decline recently and have been the same as on last Friday. Average local HRC prices have increased moderately this week, up by RMB 40/mt ($5.7/mt) from Friday, according to SteelOrbis. As a result, import activity may slow down in the near future.
The further increase in deal prices to China has pushed up HRC prices in Southeast Asia. For instance, the workable price level in Vietnam has been at $450/mt CFR and negotiations are at $455/mt CFR, while last week the tradable value was at $445-450/mt CFR maximum. A contract for 10,000-15,000 mt of Indian S275 HRC has been concluded to Malaysia at $460/mt CFR.
