Ex-China HRC offer prices have edged up slightly as major Chinese steelmaker Hebei Iron and Steel Group raised its local flat steel prices for delivery in September and overall spot prices in China have been firm. Demand from foreign buyers has slowed after some deals last week.
At present, export offers for boron-added SS400 HRC given by major Chinese mills are at $510-520/mt FOB for late October shipment, edging up by $2.5/mt on average compared to last week following a rising trend seen in the previous week.
As SteelOrbis reported earlier, traders have sold ex-China SS400 HRC at $500-505/mt FOB, which is around $10/mt above the previous tradable value a week ago. Contracts were for small volumes of 5,000-10,000 mt to Pakistan and Africa. At the moment the workable level for ex-China HRC is standing at not below $505/mt FOB.
“Higher booking costs made traders raise their offer prices, while bullish sentiments prevailed among market players amid the rising trend seen in HRC futures prices,” an international trader told SteelOrbis.
Demand for imported HRC in the major import market in Asia - in Vietnam – has been slow. Offer prices of ex-India HRC has been heard at $510-520/mt CFR Vietnam, though most bids are still at $500-505/mt CFR Vietnam. Ex-South Korea HRC have been offered at $530/mt CFR Vietnam.
During the given week, major steelmakers Baosteel and Hebei Iron and Steel Group raised their ex-works prices for HRC successively, exerting a positive impact on HRC prices in the spot market. Meanwhile, inventory of HRC has been at low-to-medium levels, providing certain support to HRC prices. It is expected that HRC prices in the Chinese domestic market will likely fluctuate within a limited range in the coming week.
Domestic HRC prices in China are at RMB 3,910-4,060/mt ($561-583/mt) ex-warehouse on August 18, with the average price level RMB 30/mt ($4.3/mt) higher as compared to August 11, according to SteelOrbis’ data.
As of August 18, HRC futures at the Shanghai Future Exchange are standing at RMB 3,984/mt ($575/mt), increasing by RMB 112/mt ($16.2/mt) or 2.9 percent since August 11.
$1 = RMB 6.9325