Ex-China HRC prices have posted another increase this week, and some deals have already been heard at higher levels. This has happened amid the recovery of local spot and futures prices on the back of the easing of the pandemic situation in Shanghai and the improved market outlook following the recent announcement of stimulus measures.
At present, export offers for boron-added SS400 HRC given by major Chinese mills are at $765-780/mt FOB for August shipment, with a midpoint at $772.5/mt FOB, posting a $12.5/mt increase on average compared to last week.
Meanwhile, the tradable level for ex-China SS400 HRC has been settled at $735-770/mt FOB, up by $5-10/mt week on week. In particular, this week, several deals for ex-China SS400 HRC have been reported at $758-760/mt CFR Vietnam, up by $10-13/mt over the past week. Besides, several deals have already been heard at $765/mt CFR in the north of Vietnam. However, according to one market source, “Vietnamese customers in the south have still been voicing their bids at $750/mt CFR.” Meanwhile, ex-China SAE1006 HRC have been offered in Vietnam at $770-780/mt CFR for August shipment, compared to $760-770/mt CFR last week. At the same time, this week, buyers in Pakistan have been refusing all Chinese offers due to problems with opening LCs.
During the given week, HRC prices in the Chinese domestic market have edged up slightly amid rising HRC futures prices. Although the increase in domestic quotes was not significant, market players are more optimistic towards the future market prospects following the resumption of production activities in Shanghai and the surrounding regions. At the same time, the capacity utilization rates of HRC producers edged down, while demand for HRC from downstream users has improved. It is thought that HRC prices in the Chinese domestic market may edge up in the coming week.
Domestic HRC prices in China are at RMB 4,850-4,970/mt ($728-746/mt) ex-warehouse on June 7, with the average price level RMB 4/mt ($0.6/mt) higher as compared to May 31, according to SteelOrbis’ data.
As of June 7, HRC futures at the Shanghai Futures Exchange are standing at RMB 4,810/mt ($722/mt), increasing by RMB 21/mt ($3.2/mt) or 0.44 percent since May 31.
$1 = RMB 6.6649
