During the week ending October 15, Chinese hot rolled coil (HRC) export offers have decreased by $10-15/mt compared to last week. At present, export offers for boron-added SS400 HRC given by Chinese mills are at $435-450/mt FOB for December shipment. “Though offer prices have been given at $450/mt from some mills, those prices could be negotiated due to severe competition from other countries,” an international trader told SteelOrbis. Such mills like Tangshan Iron and Steel have already said that official offers are at $435-440/mt FOB.
Even after the drop Chinese prices have been much higher than those from India and Russia. Offers from both this countries have been at $420/mt CFR Vietnam this week. That is why Chinese sellers will try to sell HRC to other Asian countries – to Korea and Pakistan, sources believe. The workable level for customers in Bangladesh and Pakistan is $450/mt CFR, SteelOrbis was informed.
HRC prices in the Chinese local market have seen a downward trend as market players held a pessimistic attitude towards prospect for the future HRC market due to anticipated slacker demand. This also put pressure on export offers.
Domestic HRC prices in China have decreased to RMB 3,530-3,650/mt ($499-516/mt) ex-warehouse on Tuesday, October 15, with the average price level RMB 90/mt ($13/mt) lower as compared to October 8. Over just one day, local prices lost RMB 40/mt ($5.7/mt) compared to the previous trading day, October 14. Meanwhile, HRC futures prices in China have declined by 2.46 percent on October 15 compared to October 8, to RMB 3,331/mt ($471/mt).
$1 = RMB 7.07