Ex-China hot rolled coil (HRC) offers from major mills have remained unchanged over the past week, while tradable prices from traders have posted a slight increase. Market participants describe sentiment as uncertain, with persistent volatility in HRC futures prices creating a lack of clear direction and frequently altering exporters’ pricing strategies.
Specifically, export offers for boron-added SS400 HRC from large Chinese mills have remained stable at $490-495/mt FOB, with a midpoint at $492.5/mt FOB, while offers from smaller mills have been voiced at around $480-490/mt FOB, the same as last week.
Meanwhile, the tradable price for ex-China HRC from traders has settled at $480-490/mt FOB, depending on the destination, up by $5/mt week on week. In particular, according to sources, ex-China Q235 HRC in Vietnam stands at $495/mt CFR, compared to $487-490/mt CFR last week. Besides, offers for ex-China Q235 in Pakistan have remained at around $500/mt CFR, up by $5/mt week on week.
Furthermore, Chinese offers for Q195 HRC in Turkey have settled at $515-520/mt CFR, versus $515/mt CFR at the end of last week. Meanwhile, most offers for Q235 HRC in the Middle East have been voiced at $510-520/mt CFR UAE, up by $10/mt since the beginning of last week.
Average HRC prices in the Chinese domestic market have moved up compared to the previous week amid increasing HRC futures prices and improved market sentiments.
During the given week, major Chinese steelmaker Baosteel has raised its local base prices by RMB 200/mt ($28/mt) for hot rolled coil (HRC) for delivery in September, exerting a positive impact on market sentiments. HRC futures prices have seen increases, positively affecting the prices in the spot market. However, high temperatures have continued to prevail in eastern and southern China, while the approaching typhoon PODUL may affect southern China, and both these factors will weaken the support for the HRC market. It is expected that HRC prices in the Chinese domestic market will edge up slightly in the coming week.
Domestic HRC prices in China are at RMB 3,550-3,760/mt ($497-527/mt) ex-warehouse on August 12, with the average price level RMB 40/mt ($5.6/mt) higher compared to that recorded on August 5, according to SteelOrbis’ data.
As of August 12, HRC futures at Shanghai Futures Exchange are standing at RMB 3,484/mt ($484/mt), increasing by RMB 27/mt ($3.8/mt) or 0.8 percent since August 5, while increasing by 1.4 percent compared to the previous trading day, August 11.
| Product | Spec | Quality | City | Origin | Price（RMB/mt） | W-o-w change |
| HRC | 5.75mm x 1,500 x C | Q235B/SS400 | Shanghai | Angang | 3,760 | +40 |
| Tianjin | Baotou Steel | 3,550 | +40 | |||
| Lecong | Liuzhou Steel | 3,610 | +40 | |||
| Avg | 3,640 | +40 | ||||
| HRC | 2.75mm x 1,250 x C | Q235B | Shanghai | Angang | 3,870 | +40 |
| Tianjin | Baotou Steel | 3,610 | +40 | |||
| Lecong | Angang | 3,690 | +40 | |||
| Avg | 3,723 | +40 |
$1 = RMB 7.1418
