As of September 5, export offer prices of hot rolled coil (HRC) from China have declined on week-on-week basis. However, after the $10/mt decrease recorded early in the past week, some suppliers have decided to increase their export prices responding to higher quotes in the local market and the increase in iron ore prices.
At present, export offers for boron-added SS400 hot rolled coil (HRC) given by Chinese mills are at $465/mt FOB, $7.5/mt below last week’s level, though slightly higher than the $460-465/mt FOB offers seen in the market early this week. “The production curbs to ensure clean air conditions for the 70th anniversary of the foundation of the People’s Republic of China have contributed to the improvement in market players’ sentiments,” an international trader told SteelOrbis. “However, in the long term, HRC offer prices from China may see a decreasing trend due to oversupply,” another source said.
As of September 5, average local HRC prices in China have increased by RMB 10/mt ($1.4/mt) compared to the previous day and by RMB 65/mt ($9/mt) week on week, reaching RMB 3,690-3,800/mt ($521-536/mt) ex-warehouse, according to SteelOrbis’ data.
$1 = RMB 7.08