During the past week, the Chinese hot rolled coil (HRC) market has trended in an upward direction. However, with traders holding diverse opinions about the prospects for the future market, there has been some confusion surrounding price levels, while the general transaction situation has not been good. On February 15, the average HRC prices in the main markets in China are as follows:
Product name |
Specification |
Category |
Average price (RMB/mt) |
Weekly change (RMB/mt) |
Price ($/mt) |
Weekly change ($/mt) |
HR |
5.75 mm x 1,500 mm |
Q235B |
4,870 |
+40 |
739 |
+6 |
HR |
2.75 mm x 1,250 mm |
Q235B |
4,997 |
+67 |
758 |
+10 |
On February 15, Q235/S400 5.75 mm hot rolled coil (HRC) prices stand at RMB 4,850/mt ($736/mt), RMB 4,860/mt ($737/mt) and RMB 4,900/mt ($744/mt) respectively in the Shanghai, Tianjin and Lecong markets. In addition, Q235 2.75 mm HRC stands at RMB 5,000/mt ($759/mt), RMB 4,930/mt ($748/mt) and RMB 5,060/mt ($768/mt) respectively in the abovementioned markets. All the above prices include 17 percent VAT (US$1 = RMB 6.59).
Traders hold diverse view about the prospects for the market in the coming period, and so offer levels in the market have been characterized by a certain degree of disorder. There have been significant differences between the price levels offered by various traders. The general transaction is not good, though the transaction situation has been somewhat better for low-priced materials.
Major domestic steelmakers WISCO and Baosteel have just published their prices for March deliveries. Both companies have increased their HRC product prices by RMB 300/mt ($45/mt). As a result, WISCO's SPHC 2.75 mm × 1,250 mm ×C material stands at RMB 4,640/mt ($704/mt) and its Q235 5.5 mm × 1,500 mm × C price stands at RMB 4,520/mt ($685/mt); meanwhile, Baosteel's price for SS400 5.5 mm × 1,500 m HRC stands at RMB 4,792/mt ($727/mt). The above prices do not include 17 percent VAT (US$1 = RMB 6.59).
The steel mills appear to be optimistic about the future market, given their increased prices. However, the high ex-mill prices have a negative effect on traders' profit margins. During the past week, there have not been enough actual transactions to support higher prices, and some traders have indicated that they expect a clearer price trend to be revealed when end-users come back to the post-holiday market and start to conclude purchases.
Generally speaking, it is expected that HRC market prices in China will fluctuate in an upward direction in the coming week.