Ex-China HRC offer prices have moved down in the past week as, even despite some brief revival in the local market, overall sentiments and outlook have been bearish.
At present, export offers for boron-added SS400 HRC given by major Chinese mills are at $780-800/mt FOB for February shipment, with a midpoint at $790/mt FOB, moving down by $20 compared to December 7. “The declining trend of HRC futures prices have negatively affected market players’ sentiments and weakened the support for ex-China HRC offer prices,” an international trader told SteelOrbis.
The tradable price level for SS400 coils has been heard at $775-785/mt FOB lately from mills. In addition, a trader has sold a cargo of SS400 coils at $765-770/mt CFR, with the freight assessed at $30-35/mt. The shipment is expected to be in February.
During the given week, local Chinese HRC prices have indicated declines amid the decreasing trend of HRC futures prices in China. At the same time, demand for HRC has remained sluggish, resulting in the prevailing cautious view of the future prospects for the market. It is thought that HRC prices in the Chinese domestic market will likely move sideways in the coming week.
Domestic HRC prices in China are at RMB 4,760-4,860/mt ($747.5-763/mt) ex-warehouse on December 14, with the average price level RMB 60/mt ($9.4/mt) lower as compared to December 7, according to SteelOrbis’ data. Compared with the price level on Monday, December 13, average local quotations are RMB 5/mt ($7.1/mt) lower.
As of December 14, HRC futures at the Shanghai Futures Exchange are standing at RMB 4,550/mt ($715/mt), decreasing by RMB 84/mt ($13.2/mt) or 1.8 percent since December 7.
$1 = RMB 6.3675
