Ex-China HRC offer prices have moved sideways over the past week amid the gradual increase in the local market, fluctuations in HRC futures prices, and the New Year holiday. Nevertheless, though mills, with rare exceptions, have not been willing to lower their export prices, some traders have still been able to provide lower price levels.
At present, export offers for boron-added SS400 HRC given by major Chinese mills are at $690-730/mt FOB for March shipment, moving sideways on average compared to December 29.
At the same time, the tradable value has been assessed at $660/mt FOB for this grade, versus $660-670/mt FOB a week ago, mainly because of lower bids and discounts possible from some sellers. According to sources, bids for ex-China SS400 HRC from Vietnam and Pakistan have fallen to $650/mt CFR and even only a small lot has been rumored at this level, though it has not been confirmed by the time of publication. “Buyers in the export market have been seeking to buy at lower prices, dragging down expectations for the future trend of the export market,” an international trader told SteelOrbis.
Most competitive offers for ex-China SAE1006 have been reported at $680-690/mt FOB, mainly from traders. A deal for this grade has been heard at $678/mt CFR Vietnam (or around $668/mt FOB) with no further details.
During the given week, following the previous downward corrections in HRC prices in the local market, market players have been seeking to bolster HRC offer prices in the local market amid relatively low inventory levels. Meanwhile, the high levels of iron ore prices have bolstered HRC prices from the cost side.
Domestic HRC prices in China are at RMB 4,460-4,640/mt ($689-716.5/mt) ex-warehouse on January 5, with the average price level RMB 55/mt ($8.5/mt) higher as compared to December 29, according to SteelOrbis’ data. Compared with the price level on Monday, January 4, local quotations have remained stable.
As of January 5, HRC futures at the Shanghai Futures Exchange are standing at RMB 4,494/mt ($694/mt), increasing by RMB 93/mt ($14.4/mt) or 2.1 percent since December 29.
$1 = RMB 6.476
