Ex-China HRC offer prices have increased supported by the rising trends in local prices and HRC futures prices along with higher demand for HRC globally. Besides, Chinese HRC suppliers have continued to actively sell their materials to buyers all over the world, supported by the significant global demand growth caused by the disappearance of Ukrainian and Russian HRC. Most Chinese exporters have been focusing on higher-priced markets like the Middle East, Turkey and even the EU.
Accordingly, export offers for boron-added SS400 HRC given by major Chinese mills are at $830-885/mt FOB for May shipment, with a midpoint at $857.5/mt FOB, moving up by $7.5/mt compared to March 15. This gap between the lower and the upper ends is explained by the price gap between offers to Asia and other markets. “The lowest offers are coming only to Asia, mainly to Vietnam, where Anfeng Iron and Steel offers at around $830/mt FOB, while all other markets can accept much higher prices,” a market insider told SteelOrbis.
Thus, the tradable level for SS400 HRC has been heard at $830-850/mt FOB, up by $10/mt week on week. In particular, Chinese traders have managed to sign several deals for SS400 HRC at around $865/mt CFR Vietnam, up by $10/mt week on week. Another deal for ex-China SS400 has been reported at $880/mt CFR South Korea. Meanwhile, Pakistani customers have received offers from traders for ex-China SS400 at $900/mt CFR, up by around $25/mt week on week.
In the meantime, Chinese thin coil suppliers have been mainly focused on supply to higher-priced markets, being still the most competitive among all foreign suppliers. Thus, only a few deals for ex-China SAE1006 have been signed in Vietnam at $905/mt CFR (around $870/mt FOB level), while deal prices to other markets have exceeded $890/mt FOB. In particular, according to sources, numerous cargoes (around 200,000 mt in total) for ex-China SAE1006 HRC have been sold to Africa and the Middle East at around $890-900/mt FOB since the past week. “This week, China has sold to the UAE at $980/mt CFR, while the current offers are coming at $1,000/mt CFR,” an international trader told SteelOrbis. Furthermore, HRC offers from Chinese traders have been voiced at $1,010-1,015/mt CFR Turkey, with some sales reportedly closed recently at the abovementioned level. Besides, HRC offers from Chinese mills have been reported at $1,025-1,050/mt CFR Turkey.
Furthermore, ex-China SAE1006 HRC offers have also been voiced in Europe at $1,040-1,050/mt CFR and above. However, European buyers are not interested in ex-China HRC so far, given the AD and CVD rates within the range of 18.1-35.9 percent.
During the given week, HRC prices in the Chinese domestic market have seen rises amid declining inventory levels. The worsening of the Covid-19 pandemic in many regions of China has negatively affected the circulation of supplies and the demand for HRC, though supply has also been negatively affected.
As of March 22, HRC futures at the Shanghai Futures Exchange are standing at RMB 5,163/mt ($810.5/mt), rising by RMB 231/mt ($36.3/mt) or 4.7 percent since March 15.
$1 = RMB 6.376