Demand for imported HRC in China has increased recently in tandem with the better situation in the local market. Chinese buyers have focused on purchases of Vietnamese and Taiwanese coils, as shipments from these destinations have zero import duty. At the same time, buying of Indian HRC has remained slow.
After reports about the first sale of Vietnamese HRC to China at $470/mt CFR, as SteelOrbis reported on Monday this week, there has been information disclosed today, July 22, about additional tonnages sold at $472-474/mt CFR China, according to a number of sources. According to the seller, the total volumes sold from Vietnam to China recently were at around 100,000 mt, while trading sources claimed that the overall tonnage was up to 150,000 mt, which has not been confirmed. Chinese traders told SteelOrbis that no import tax and short delivery times were regarded as advantages for buying ex-Vietnam HRC. The material will be delivered to China in late August-September. At the moment, offers for Vietnamese coils have increased up to $480/mt CFR.
There have also been rumors about the sale of ex-Taiwan HRC, which also does not have import duty, at around $475/mt CFR, though this has not been confirmed by the seller’s side by the time of publication. For now, offers from Taiwan have added $10/mt in China.
At the same time, interest in buying of Indian coils, which are subject to three percent duty, has slowed down in China. The achievable price level for Indian material has been assessed at $465-467/mt CFR, according to sources, in China at the moment, which is much higher than the previous deal at $455/mt CFR. But “due to the huge quantity imported during the past two weeks, there is too much material in the market. Now it will be difficult to sell at a higher price,” a Chinese trader said.
Prices for HRC in the import Vietnamese market are also on the rise, following gains in China. Most offers from India are at $470-475/mt CFR and the tradable value is not below $465/mt CFR for now, though customers have been reluctant to accept this price level so far.
