Ex-China HRC prices saw slight declines late last week and have remained mainly stable since then, being too high for the majority of customers. Some suppliers were even trying to increase prices early this week, but this mainly reflected stable demand in the local market rather than a better situation in the export markets. Import purchases of HRC are on pause ahead of the holidays later this week.
At present, export offers for boron-added SS400 HRC given by major Chinese mills are at $445-465/mt FOB for late August shipment. Some exporters adjusted the low-end of the offer price range late last week, and so the overall prices are down by $2.5/mt on average compared to June 16. However, most offers are on the higher end of the range on Tuesday, June 23, as some mills have been attempting to increase prices recently, showing lower interest in sales abroad. Cautious sentiments have prevailed among players in export and import markets ahead of the approaching Dragon Boat Festival (June 25-27). Import offers from India have been heard at $445-450/mt CFR and overall activity has been quite.
In the export market, most rivals of China have been offering more competitive prices. For instance, offer prices for ex-South Korea and ex-Japan HRC have been heard at $460-465/mt CFR Vietnam, with ex-India HRC offers at $450/mt CFR Vietnam.
“The local demand for HRC in China has been good, resulting in a supply shortage and bolstering prices in both local and export markets,” an international trader has told SteelOrbis.
Domestic HRC prices in China are at RMB 3,720-3,770/mt ($526.4-533.5/mt) ex-warehouse on June 23, with the average price level RMB 50/mt ($7.1/mt) higher as compared to June 16, according to SteelOrbis’ data. Inventory of HRC has been at relatively low levels during the past week, providing support for HRC prices. It is thought that HRC prices in the Chinese domestic market will move sideways in the coming week due to the Dragon Boat Festival. As of June 23, HRC futures at the Shanghai Future Exchange are standing at RMB 3,603/mt ($504/mt), increasing by RMB 38/mt ($5.4/mt) or 1.1 percent since June 16.
$1 = RMB 7.0671