Ex-China HRC offer prices have moved up sharply this week again amid still tight supply in Asia and steadily increasing bid prices from the major customers from Vietnam and Pakistan, as well as the hikes in other markets like Turkey and the EU. Good expectations for the market trend in 2021 have bolstered HRC prices from China.
At present, export offers for boron-added SS400 HRC given by major Chinese mills are at $595-605/mt FOB for February shipment, moving up by $20/mt on average compared to November 24. The reference deal price level has reached $585/mt FOB on average for SS400 HRC, up from $568-570/mt FOB a week ago. The latest tradable level for this grade to Vietnam has been reported at around $600/mt CFR, which translates to $590/mt FOB, while some other bids to mills have been heard at $580/mt FOB, sources have said.
A contract for ex-China SAE1006 HRC to Pakistan was reported at $615/mt CFR last week (equivalent to $600/mt FOB). In Vietnam, ex-China SAE1006 coils were sold at $600-605/mt CFR last week and then new deals have been reported at $610/mt CFR and $615/mt CFR. The latest of them is equivalent to $605/mt FOB.
“Chinese steelmakers have raised their ex-China HRC offer prices, and market players hold bullish sentiments towards the prospects for the market in 2021, and so some traders built up stocks and have waited for higher prices, pushing up ex-China offer prices,” an international trader told SteelOrbis.
Offer prices of ex-Taiwan, ex-Japan and ex-South Korea SAE1006 HRC, used by re-rollers in Vietnam have increased further to $650-660/mt CFR, up by $10-20/mt from the previous level reported on Monday.
During the given week, HRC prices in the Chinese domestic market have moved up amid rising HRC futures prices and steelmakers’ price increases. The average spot price level of HRC in China has reached RMB 4,165/mt ($632/mt) ew-warehouse, up by RMB 65/mt ($9.9/mt) from November 24. At the same time, the supply shortage has also bolstered HRC prices. Recently, there have been limited HRC supplies arriving at the market, which resulted in decreasing inventory levels and exerted a positive impact on the HRC market.
As of December 1, HRC futures at the Shanghai Futures Exchange are standing at RMB 4,178/mt ($618.3/mt), increasing by RMB 136/mt ($20.6/mt) or 3.36 percent since November 24.
$1 = RMB 6.5921
