During the week ending August 29, export offer prices of hot rolled coil (HRC) from China have continued to follow a downtrend as exporters in China have borne pressure from the aggressive policy of competitors in surrounding markets and also due to lower iron ore prices. However, after the drop in export prices, registered on Tuesday this week, Chinese HRC suppliers have decided to keep their export prices stable.
At present, export offers for boron-added SS400 hot rolled coil (HRC) given by Chinese mills are at $470-475/mt FOB, $5-10/mt below last week’s level, while steel mills still lack orders and have been willing to cut prices. “The escalated Sino-US trade friction has negatively affected market players’ sentiment, and the downward trend in HRC futures prices has also exerted a negative impact on HRC offer prices from China,” an international trader told SteelOrbis.
Nevertheless, there are expectations in the market that domestic demand in China will improve in September, which, together with expected production cuts, may give some support to the current positions of exporters. Local average HRC prices have increased by RMB 10/mt ($1.5/mt) today, August 29, reaching RMB 3,620-3,730/mt ($511-526/mt) ex-warehouse, according to SteelOrbis’ data.
$1 = RMB 7.09