Ex-China HRC offer prices have moved up amid tight supply and the appreciation of the Chinese currency. At the same time, local prices have also seen rises over the past week.
At present, export offers for boron-added SS400 HRC given by major Chinese mills are at $520-545/mt FOB for January shipment, moving up by $5/mt on average compared to October 27, while moving sideways compared to late last week. The reference deal prices have kept increasing gradually, reaching $520/mt FOB, versus $515/mt FOB last week.
A trade of ex-China SS400 HRC has been heard at $535/mt CFR in Pakistan, which is equivalent to around $520/mt on FOB basis. Most offers for this grade are not lower than $525/mt FOB at the moment. “There will be a lot of uncertainties in the global market due to the US presidential election and the blockade[JF1] in countries of the EU, which will affect the HRC export market, and so cautious sentiments have prevailed,” an international trader told SteelOrbis.
The latest deal for ex-China SAE1006 from China has been at $530/mt CFR to Vietnam or $520/mt FOB, but offers have already been heard at $535/mt CFR and above, while some mills have been offering at $545/mt CFR Vietnam.
During the given week, bullish sentiments have prevailed among players in the local Chinese HRC market, with offer prices being pushed up. Meanwhile, inventory of HRC has not indicated big changes as buyers have mostly consumed their stocks. Domestic HRC prices in China are at RMB 3,860-3,980/mt ($576.5-594/mt) ex-warehouse on November 3, with the average price level RMB 40/mt ($6.0/mt) higher as compared to October 27, according to SteelOrbis’ data.
As of November 3, HRC futures at the Shanghai Futures Exchange are standing at RMB 3,862/mt ($577/mt), increasing by RMB 50/mt ($7.5/mt) or 1.3 percent since October 27.
$1 = RMB 6.6957
