The negative outlook for HRC demand in the world outside China has put pressure on Chinese export prices. Chinese exporters have decided to visibly cut HRC offers, trying to accelerate sales abroad, while demand in the local market has been stable and prices have even increased slightly.
Offers from Chinese mills for SS400 HRC have been heard at $415-435/mt FOB today, March 25, $10-25/mt below the level of $440-445/mt FOB seen a day earlier, SteelOrbis has learned. Sources said that many offers have been at $425/mt FOB and “around $420/mt is tradable right now,” a source said. One of the major reasons for the price drop has been tighter competition, while demand in the major consuming markets for China - in Vietnam, Pakistan and South Korea - has been falling due to the national lockdowns and quarantines.
Offer prices of ex-China HRC for Vietnam have reached $430-435/mt CFR, but there have been no reports of deals so far and buyers are expected to cut bid prices again in the near future. Offers for ex-Russia SAE1006 HRC have been at $430/mt CFR, while prices for ex-India coils have mostly been heard at $430/mt CFR Vietnam, though even early this week only rare indicative prices were at this level. Moreover, some sources have reported that offers for Indian coils are already at $415-420/mt CFR Vietnam. Rare bids have been heard at $405-410/mt CFR Vietnam.
In the local market in China, average HRC prices have added RMB 15/mt ($2/mt) today to RMB 3,350-3,410/mt ($472-481/mt) ex-warehouse, according to SteelOrbis’ data.