Ex-China HRC offer prices have gone down in the past week due to weak demand and declines in local prices, but following the recent rebound in futures and sharp iron ore prices rises sentiments have also improved.
At present, export offers for boron-added SS400 HRC given by major Chinese mills are at $790-800/mt FOB for January shipment, with a midpoint at $795/mt FOB, moving down by $15/mt compared to November 16. “The prevailing bearish sentiments and slack demand have exerted a negative impact on HRC prices,” an international trader told SteelOrbis.
The tradable price level for SS400 coils from mills has been heard at $785-795/mt FOB lately, while the general workable level from traders has remained at $770-780/mt FOB. But a positive move has been seen from the short position offers for shipment from February and beyond. For instance, SS400 HRC was offered to Vietnam at as low at $770/mt CFR, but this week the offered level is $780/mt CFR at the lowest.
During the given week, HRC prices in the Chinese domestic market have indicated a downtrend amid the cautious sentiments prevailing among market players, though HRC futures prices started to see a rebounding trend on Monday this week. The demand for HRC has remained slack and is unlikely to indicate a significant improvement in the near future. But higher costs from rises seen in iron ore prices may support Chinese HRC prices in the near future.
Domestic HRC prices in China are at RMB 4,680-4,750/mt ($732-743/mt) ex-warehouse on November 23, with the average price level RMB 45/mt ($7.0/mt) lower as compared to November 16, according to SteelOrbis’ data. Compared with the price level on Friday, November 19, average local quotations are RMB 55/mt ($8.6/mt) higher.
As of November 23, HRC futures at the Shanghai Futures Exchange are standing at RMB 4,423/mt ($692/mt), increasing by RMB 52/mt ($8.1/mt) or 1.2 percent since November 16.
$1 = RMB 6.3929
