Returning from the Labor Day holiday, sentiment in the Chinese HRC market has not improved among exporters. Average HRC prices in the Chinese domestic market have fluctuated within a limited range compared to the previous week, coupled with slightly declining futures prices. As a result, most offers from Chinese mills - both large and small -have remained stable or even shown a slight downward trend. Meanwhile, traders' offers, which increased slightly last week, have stayed unchanged, while overall business activity remains sluggish.
More specifically, export offers for boron-added SS400 HRC from most large Chinese mills stand at $455-475/mt FOB, with a midpoint at $465/mt FOB, down by $2.5/mt week on week. “Most mills have been maintaining their prices stable, though some offers have been reported at lower levels or around $455/mt FOB,” a market insider told SteelOrbis. Offers from smaller mills have been voiced at $455-460/mt FOB, up by $3/mt on the lower end of the range week on week.
Meanwhile, tradable prices for ex-China SS400/Q235 HRC have remained at $450-460/mt FOB. Offers for ex-China Q235 HRC 2,000 mm have been voiced at $475-478/mt CFR Vietnam, compared to $470-472/mt CFR last week. At the same time, suppliers in the Middle East have reported most ex-China SS400 HRC offers at $490-495/mt CFR, the same as last week, though no deals have been heard so far, while a customer in the UAE commented, “Buyers still expect to reach $485/mt CFR.” Furthermore, offers for ex-Turkey Q195 HRC have been estimated at $485-490/mt CFR, mainly the same as last week.
In the meantime, domestic HRC prices in China have settled at RMB 3,330-3,520/mt ($462.5-489/mt) ex-warehouse on May 6, with the average price level remaining stable compared to that recorded on April 29, according to SteelOrbis’ data.
During the given week, the real estate sector has continued to perform poorly, exerting a negative impact on the steel market and weakening market sentiments. However, the demand from downstream users for HRC is in the peak zone for the year, which will bolster prices to a certain degree.
As of May 6, HRC futures at Shanghai Futures Exchange are standing at RMB 3,196/mt ($444/mt), decreasing by RMB 14/mt ($1.9/mt) or 0.4 percent since April 29, while down 0.19 percent compared to the previous trading day, April 30.
| Product | Spec | Quality | City | Origin | Price（RMB/mt） | W-o-w change |
| HRC | 5.75mm*1500*C | Q235B/SS400 | Shanghai | Angang | 3,520 | -20 |
| Tianjin | Baotou Steel | 3,330 | -10 | |||
| Lecong | Liuzhou Steel | 3,440 | +30 | |||
| Avg | 3,430 | - | ||||
| HRC | 2.75mm*1250*C | Q235B | Shanghai | Angang | 3,630 | -20 |
| Tianjin | Baotou Steel | 3,390 | -10 | |||
| Lecong | Angang | 3,520 | +30 | |||
| Avg | 3,513 | - |
$1 = RMB 7.2008