In late March, more and more Asian hot rolled coil (HRC) market participants have been talking about resumption of imports of commercial grade coils by China. Weak demand in the global market together with high supply volumes have led to aggressive offers from some suppliers, which have resulted in several deals.
About 20,000 mt of ex-India HRC have been traded at $395/mt CFR China (this price corresponds to below $380/mt FOB), according to a number of sources. There have been rumours in the market about a sale from one of the largest Indian mills at $400-405/mt CFR China earlier, but this information has not been confirmed by the time of publication.
Moreover, some sources said that a cargo of ex-South Korea HRC has changed hands at $400/mt CFR China recently.
An offer from Russia has been heard at $395/mt CFR for June shipment today, March 31, but bids have fallen to $380/mt CFR. A deal for ex-Ukraine has been rumoured to China, but there has been no confirmation of it so far.
“There is not any interest in offers at $400/mt CFR now,” a Chinese trader said. Moreover, some sources believe that import HRC prices in China will fall to $380/mt CFR soon, taking into account already weak demand in Southeast Asia and Vietnam’s announcement of nationwide epidemic from April 1.