Ex-China hot rolled coil (HRC) export prices have remained mostly stable over the past week, with limited movement seen across key destinations. While large mills have maintained offer levels and traders have kept prices unchanged, buying interest remains subdued, particularly ahead of the Chinese New Year holiday, as weaker domestic prices and declining futures prices have weighed on market sentiments.
Specifically, the price range for boron-added SS400 HRC from large Chinese mills has been estimated at $475-480/mt FOB, compared to $470-485/mt FOB last week, but with a midpoint at $477.5/mt FOB, the same as last week. However, offers from smaller private mills have been voiced mainly at $465-475/mt CFR, versus $468-475/mt CFR last week, while their business activity has remained slow.
At the same time, offers from Chinese traders have been voiced at $465-470/mt FOB, the same as last week. Ex-China 2,000 mm Q235 HRC offers in Vietnam are still rare due to the absence of non-VAT offers, though offers with VAT for April shipment have been voiced at $495/mt CFR Vietnam this week, according to sources.
Meanwhile, Chinese offers for SS400 HRC to other destinations like the Middle East have settled at around $500-510/mt CFR UAE, depending on the supplier, the same as last week, but most customers have still been reporting workable price levels at $490-495/mt CFR UAE. In addition, Chinese Q195 HRC offers through traders to Turkey have been estimated at $500-505/mt CFR for March shipment, the same as last week.
In the meantime, average HRC prices in the Chinese domestic market have indicated decreases compared to the previous week amid the prevailing cautious sentiments and decreasing HRC futures prices. In particular, domestic HRC prices in China have settled at RMB 3,280-3,400/mt ($471-488.5/mt) ex-warehouse on February 3, with the average price level RMB 17/mt ($2.4/mt) lower compared to that recorded on January 27, according to SteelOrbis’ data.
During the given week, since the Chinese New Year holiday (February 14-23) is approaching, demand for HRC has been quiet, exerting a negative impact on prices. At the same time, the plunge in commodity prices over the past few days has negatively affected market sentiments and HRC futures prices. Cautious sentiments prevail among market players.
As of February 3, HRC futures at Shanghai Futures Exchange are standing at RMB 3,265/mt ($469/mt), decreasing by RMB 24/mt ($3.4/mt) or 0.7 percent since January 27, while decreasing by 0.34 percent compared to the previous trading day, February 2.
| Product | Spec | Quality | City | Origin | Price（RMB/mt） | W-o-w change |
| HRC | 5.75mm x 1,500 x C | Q235B/SS400 | Shanghai | Angang | 3,400 | -20 |
| Tianjin | Baotou Steel | 3,280 | -10 | |||
| Lecong | Liuzhou Steel | 3,390 | -20 | |||
| Avg | 3,357 | -17 | ||||
| HRC | 2.75mm x 1,250 x C | Q235B | Shanghai | Angang | 3,510 | -20 |
| Tianjin | Baotou Steel | 3,340 | -10 | |||
| Lecong | Angang | 3,470 | -20 | |||
| Avg | 3,440 | -17 |
$1 = RMB 6.9608