Boosted by the increased ex-factory prices of leading mills and the ascension of the steel futures market, the hot rolled market in China has remained on an upward trend throughout the past week.
Product name | Specification | Category | Average price (RMB/mt) | Weekly change (RMB/mt) | Price ($/mt) |
HR | 5.75 mm x 1,500 mm | Q235B | 3,760 | +63 | 551 |
HR | 2.75 mm x 1,250 mm | Q235B | 3,907 | +64 | 573 |
In the past week most traders in the domestic market were active in raising their prices. In spite of the climbing market prices, there has not yet been any obvious release of end-side demand; some briskness has been observed as regards conclusion of deals at lower prices, while slackness has been seen at higher levels. However, since overall production has been affected by the overhauling works recently carried out by some mills, market supply is unlikely to soar sharply in the near future, thus providing significant support for the market. As regards the future, some traders have stated that, with no big change observed in the macroeconomic situation, the market will maintain its uptrend in the short term.
Hot rolled inventory in China's leading markets has indicated an uptrend during the past week. According to the latest figures, total hot rolled inventory in China's leading markets stands at 3.84336 million mt, up 35,990 mt week on week and up 167.35 percent year on year. Moreover, hot rolled inventory in Shanghai amounted to 1.36396 million mt on November 19, up 33,060 mt compared with the level on November 12.
Following the new price policies issued by Baosteel and WISCO in the previous week, many other mills have also made upward adjustments in the range of RMB 30-350/mt ($4-51/mt) to their hot rolled prices in the past week. Currently, the ex-factory prices of 5.75 mm Q235 HRC from China's major mills are at around RMB 3,700-3,800/mt ($543-557/mt) for December shipment, including 17 percent VAT ($1 = RMB 6.82).
On the export side, the mainstream export quotations of Chinese HRC are now in the range of $500-510/mt FOB, up $10/mt week on week, with quotations even up to $520-530/mt FOB according to some mills.
Overall, with room still available for a further rise in the local hot rolled market, Chinese HRC prices are expected to fluctuate on an upward trend in the coming week.