Chinese customers have shown demand for imported CRC and HDG recently, while negotiations for HRC have slowed down due to the gap between offers and bids.
According to sources, about 25,000-30,000 mt of CRC from two major Indian mills have been traded to China at $475-485/mt CFR recently. Moreover, there has been information about a deal at $495/mt CFR. Chinese traders have reported regarding a South Korean CRC sale as well, but the price has not been disclosed by the time of publication. Sources have mentioned high prices for raw materials and a shortage of some grades of flat steel products in the Chinese market as the main reasons behind the increase in interest in importing CRC. “Indian prices are lower than China’s, even other countries like South Korea and Vietnam can offer cheaper for some specifications,” a source said.
There was a rumoured HDG import deal from the main South Korean producer a week ago, but the price level has not been disclosed so far.
At the same time, late this week the situation in the HRC market in China has improved and traders have started to be more interested in purchases of imported coils again. Average local HRC prices have gained RMB 25/mt ($3.5/mt) today, Friday, June 19, compared to Thursday, according to SteelOrbis’ data. Moreover, futures HRC prices at Shanghai Futures Exchange have reached RMB 3,659/mt ($516/mt), up by RMB 64/mt ($9/mt) today. Bids for Indian HRC have been heard mostly at $430/mt CFR and not higher early this week, but after the recent gains in the local market bids have increased by up to $10/mt, SteelOrbis has learned.
