Although average HRC prices in the Chinese domestic market have moved up slightly compared to the previous week, most export offers from Chinese mills have declined further considering the weak demand in all the main trade destinations. At the same time, tradable prices for ex-China SS400 HRC have been moving sideways in rare deals.
More specifically, export offers for boron-added SS400 HRC from large Chinese mills have settled at $445-460/mt FOB, with a midpoint at $452.5/mt FOB, down by $5/mt since June 3. Meanwhile, smaller mills have been offering their HRC at around $435-445/mt FOB, down by $5-10/mt week on week.
In the meantime, the tradable price for ex-China SS400/Q235 HRC has been estimated at $435-445/mt FOB, the same as last week. Offers for ex-China Q235 HRC in Vietnam have settled at around $448-450/mt CFR, down by $2/mt on the lower end of the range week on week.
Furthermore, offers for ex-China Q195 HRC from traders in Turkey have been estimated at $470-475/mt CFR, the same as last week, while offers for ex-China SS400 HRC to the Gulf region have been voiced at $475-485/mt CFR, the same as last week.
"There is no clear trend in prices. Despite the prevailing negativity, the sentiment has not yet turned desperate,” a market insider told SteelOrbis, adding, “HRC futures prices’ slight recovery could positively affect the mood if the uptrend lasts longer than a few days.”
In the meantime, HRC prices in the Chinese domestic market have seen some rises amid the slight recovery of HRC futures prices. In particular, domestic HRC prices in China have settled at RMB 3,240-3,480/mt ($450-483/mt) ex-warehouse on June 10, with the average price level RMB 27/mt ($3.7/mt) higher compared to that recorded on June 3, but moving sideways as comparted to yesterday, June 9, according to SteelOrbis’ data.
According to sources, the apparent consumption of HRC in China has been slightly more favourable, bolstering prices. At the same time, major Chinese steelmaker Baosteel has announced stable HRC ex-works prices for delivery in July, providing some support for the spot market. However, since it is currently the plum rainy season in the lower and middle reaches of the Yangtze River, demand for HRC will be negatively affected. It is thought that HRC prices in the Chinese domestic market will fluctuate within a limited range in the coming week.
As of June 10, HRC futures at Shanghai Futures Exchange are standing at RMB 3,089/mt ($430/mt), increasing by RMB 37/mt ($5.1/mt) or 1.2 percent since June 3, while remaining stable compared to the previous trading day, June 9.
| Product | Spec | Quality | City | Origin | Price (RMB/mt） | W-o-w change |
| HRC | 5.75mm x 1,500 x C | Q235B/SS400 | Shanghai | Angang | 3,480 | +30 |
| Tianjin | Baotou Steel | 3,240 | +30 | |||
| Lecong | Liuzhou Steel | 3,350 | +20 | |||
| Avg | 3,357 | +27 | ||||
| HRC | 2.75mm x 1,250 x C | Q235B | Shanghai | Angang | 3,590 | +30 |
| Tianjin | Baotou Steel | 3,300 | +30 | |||
| Lecong | Angang | 3,430 | +20 | |||
| Avg | 3,440 | +27 |
$1 = RMB 7.184