Ex-China HRC offer prices have moved up sharply in the past week following the uptrend in the previous week amid the rises in local prices and HRC futures, because strong production cuts are expected to start in the near future.
At present, export offers for boron-added SS400 HRC given by major Chinese mills are at $960-1,020/mt FOB for September shipment, with a midpoint at $990/mt FOB, moving up by $65/mt on average compared to last week. “The continuous rising trend in HRC futures prices following the 100th Anniversary of the Founding of the Communist Party of China bolstered ex-China HRC prices,” an international trader told SteelOrbis.
As a result of the recent price increase, the export sales activity has been reduced. The tradable price level for SS400 coils has been assessed by mills at not below $930/mt FOB, while Vietnamese customers have been asking for prices below $900/mt CFR. S. Korean imports have also been quite, seeing the acceptable price at not above $920/mt FOB from China.
The workable price level for SAE1006 HRC from Chinese small mills and traders has been reported at $940-960/mt FOB with no deals heard lately.
During the given week, domestic HRC prices have seen rises amid the increasing trend in HRC futures prices. However, demand for HRC has not seen significant improvement. The expectation for production restrictions bolstered the HRC market. At the same time, raw material prices have been at relatively high levels, providing certain support to HRC prices. It is thought that HRC prices in the Chinese domestic market will likely edge up in the coming week.
Domestic HRC prices in China are at RMB 5,690-5,830/mt ($877-899/mt) ex-warehouse on July 20, with the average price level RMB 35/mt ($5.4/mt) higher as compared to July 13, according to SteelOrbis’ data. Compared with the price level on Monday, July 19, average local quotations are RMB 70/mt ($10.8/mt) lower.
As of July 20, HRC futures at the Shanghai Futures Exchange are standing at RMB 5,968/mt ($920/mt), increasing by RMB 101/mt ($15.6/mt) or 1.7 percent since July 13.
$1 = RMB 6.4855