During the past week ending November 12, Chinese hot rolled coil (HRC) export offers have moved upwards. At present, export offers for boron-added SS400 HRC given by major Chinese mills are at $440-450/mt FOB, up $5/mt from November 5. “South Korea, Japan and Taiwan-origin HRC offers are heard at $440/mt CFR Vietnam, resulting in quiet activity in the ex-China market,” a trader told SteelOrbis.
Chinese producers have managed to offer at higher prices in the international market, seeing some support from their domestic market. HRC prices in the local Chinese market have edged up slightly due to decreases in inventory levels. During the past week, domestic HRC prices in China have increased to RMB 3,510-3,650/mt ($500-516/mt) ex-warehouse, with the average price level RMB 5/mt higher as compared to November 5. Offers in the southern part of China in Guangdong Province and in the north (Tianjin) have added RMB 20/mt ($2.9/mt) over the week, while quotations in Shanghai have decreased slightly, by RMB 10/mt ($1.4/mt), according to SteelOrbis’ data.
At the same time, Baosteel has kept its HRC prices stable for December. HRC futures prices at Shanghai Futures Exchange (SHFE) are standing at RMB 3,380/mt ($483/mt) on November 12, up 1.84 percent from November 11.