Chinese hot rolled coil (HRC) export offers have increased further during the past week as major Chinese steelmakers raised their export offer prices. “Tight supply has contributed to steelmakers’ price rises as they have received sufficient orders, signaling quite good demand from overseas buyers,” an international trader told SteelOrbis.
At present, export offers for boron-added SS400 HRC given by major Chinese mills are at $480-500/mt FOB, increasing by $10/mt on average compared to last week, though reductions of up to $5-10/mt on the highest price could be negotiated. There have been reports of sales at $480-485/mt FOB to major markets of Chinese exporters - to Vietnam, Pakistan and South Korea.
The local Chinese market has been mostly stable recently. During the past week, domestic HRC prices in China have been at RMB 3,740-3,950/mt ($533.4-563.3/mt) ex-warehouse, with the average price level RMB 10/mt ($1.4/mt) lower as compared to December 17, according to SteelOrbis’ data.
In the given week, inventory of HRC have been at comparatively low levels. However, demand has not been very high due to the seasonal factor and the approach of the New Year and Chinese New Year holidays.
As of December 24, HRC futures at the Shanghai Future Exchange are standing at RMB 3,553/mt ($506.7/mt), increasing by RMB 13/mt ($1.85/mt) or 0.37 percent since December 16.
$1 = RMB 7.0119
