Local HRC prices in China have increased on May 6, the first working day after the Labor Day holiday. Export prices from China have remained uncompetitive as suppliers from India and Russia have been offering at lower levels.
Offer prices of ex-China SS400 HRC from mills have been heard at $415-420/mt FOB, in line with the levels before the holiday. Though there have been reports of a deal at $410/mt FOB for late June shipment, this level is uncompetitive in most buying countries in Asia, such as Vietnam or South Korea.
“China’s offer prices for HRC have not been competitive at all compared to lower prices from other sources,” a trader told SteelOrbis. Offers for ex-India HRC have been heard at $390-395/mt CFR Vietnam, with some small tonnage being sold at the lower end of the range this week, sources have said. Russian big coils have been offered at $385-390/mt CFR Vietnam. South Korean exporters have become more aggressive and, though there have been no firm offers heard to Vietnam, sources expect new prices at $390/mt CFR Vietnam at the maximum, taking into account prices from South Korea to other destinations.
Domestic HRC prices in China have increased over the past week by RMB 55/mt ($7.8/mt) to RMB 3,340-3,380/mt ($472-478/mt) ex-warehouse, according to SteelOrbis’ data. Compared to the latest working day before the holidays, prices have increased by RMB 40/mt ($5.6/mt).
Market players expect that stronger local HRC prices will stimulate import bookings as the price difference between domestic and import quotations is more than $30/mt. The tradable value for imported HRC has been heard at $385-390/mt CFR China, sources said, in line with or slightly higher compared with the previous bookings.
$1 = RMB 7.069
