Ex-China HRC offer prices have moved up further amid rising HRC prices in the local Chinese market owing to better demand and prevailing bullish sentiments among market players. As a result, the tradable value for imported HRC in the major Asian import markets like Vietnam and Pakistan have also increased.
At present, export offers for boron-added SS400 HRC given by major Chinese mills are at $510-535/mt FOB for December shipment, moving up by $10/mt on average compared to last week and up $5/mt on average from last Friday.
Tradable price for Chinese HRC higher, but still competitive in Asia
The tradable value for SS400 HRC from China has also gone up, to $510/mt FOB, sources have said, while it was at $500/mt FOB on average before the holidays.
Offers for ex-China SS400 HRC have been heard at $530/mt CFR Pakistan against a deal at $518/mt CFR before the holidays. SAE1006 coils from China have been available at $540/mt CFR in Pakistan for late December shipment, sources reported.
A fresh deal for Chinese SAE1006 coils has been signed to Vietnam at $525/mt CFR this week, up by $9/mt from the previous contract reported last Friday. “Since the appreciation of the Chinese currency is expected, buyers in the export market have been willing to accept higher offer prices of ex-China HRC, especially amid the rising offer prices of HRC of other origins in Vietnam,” an international trader told SteelOrbis. Ex-South Korea and ex-Japan HRC has been offered at $545/mt CFR Vietnam, up by $5/mt week on week. Offer prices of ex-Taiwan HRC have been heard at $550/mt CFR. Indian mills are still offering at $540-545/mt CFR to Vietnam. “Chinese traders are still the most competitive with $525/mt CFR,” a local source in Vietnam said.
Chinese domestic market price moves up before stabilizing on Tuesday
During the past week, HRC prices in the Chinese domestic market have seen big rises amid the production restriction policy issued in Tangshan and stock replenishments following the long holiday. Bullish sentiments have prevailed among market players. At the same time, inventory of HRC has increased slightly.
Domestic HRC prices in China are at RMB 3,900-3,940/mt ($579.5-585.4/mt) ex-warehouse on October 13, with the average price level RMB 95/mt ($14/mt) higher as compared to September 30, according to SteelOrbis’ data. Domestic prices have been stable on Tuesday, October 13, compared to the previous day.
As of October 13, HRC futures at the Shanghai Futures Exchange are standing at RMB 3,784/mt ($539.5/mt), increasing by RMB 110/mt ($16.3/mt) or 3.0 percent since September 29.
$1 = RMB 6.7296
