Ex-China HRC offer prices have moved up significantly early this week amid the sharp rises seen in the local market after the rally in HRC futures prices in China. The appreciation of the Chinese currency has added to the situation as suppliers have been trying to offset currency fluctuations and to increase prices in line with local quotations. Last week, Chinese exporters managed to sell HRC at higher prices to the major sales destinations and so they have been more bullish this week, even though customers have been resisting such a sharp hike in prices.
At present, export offers for boron-added SS400 HRC given by major Chinese mills are at $545-575/mt FOB for January shipment, moving up by $20-25/mt on Monday and by another $5/mt on Tuesday, which resulted in a total hike of $27.5/mt on average compared to November 3. The reference deal prices have been heard at $535/mt FOB for SS400 HRC from China, up by $5-10/mt from Friday and up $15/mt over the week. “Big rises in HRC futures prices and the appreciation of the Chinese currency exerted a positive impact on ex-China HRC prices,” an international trader told SteelOrbis.
Export deal prices for Chinese SAE1006 HRC, used by re-rollers, increased to $540-545/mt FOB, based on the latest bookings to Vietnam and Pakistan at the end of last week. In particular, two major mills sold this grade of HRC at $550/mt CFR and $553/mt CFR to Vietnam, as SteelOrbis reported earlier. In Pakistan, a deal for ex-China SAE1006 was done at $558/mt CFR late last week, which translates to $543/mt FOB. At the moment, offers for SAE1006 coils have increased to a minimum of $550/mt FOB ($560/mt CFR Vietnam) and up to $570-575/mt FOB.
During the given week, the rising trend of HRC futures prices has pushed up local HRC prices amid the prevailing bullish sentiments. Meanwhile, inventory has been at a relatively low level, which bolstered HRC prices. Domestic HRC prices in China are at RMB 4,000-4,080/mt ($607-619/mt) ex-warehouse on November 10, with the average price level RMB 120/mt ($18.2/mt) higher as compared to November 3, according to SteelOrbis’ data.
As of November 10, HRC futures at the Shanghai Futures Exchange are standing at RMB 3,933/mt ($597/mt), increasing by RMB 71/mt ($10.8/mt) or 1.8 percent since November 3.
$1 = RMB 6.5897
