Ex-China HRC offer prices have moved up amid the rise in futures prices and the rapid change in the global trade environment after the Russian invasion of Ukraine.
At present, export offers for boron-added SS400 HRC given by major Chinese mills are at $830-840/mt FOB for May shipment, with a midpoint at $835/mt FOB, moving up by $12.5/mt compared to February 22. “All mills have increased their prices to $830-840/mt FOB level, and also Anfeng Steel, who last week offered at $805/mt FOB, has increased its prices to $825/mt CFR this week,” a China-based trader told SteelOrbis.
“The purchase restriction policy has eased in the real estate market in many regions, exerting a positive impact on market players’ sentiments, while the inventory levels of HRC have declined, also bolstering prices,” an international trader told SteelOrbis.
At the same time, the tradable level for SS400 has been heard at $800-815/mt FOB, moving up by $15/mt week on week. New Chinese offers have increased to $828-830/mt CFR Vietnam, while the latest deals from Chinese traders selling a few position cargoes have been reported at $800-805/mt CFR Vietnam, done last week. Meanwhile, offers for ex-China SAE1006 HRC have been heard at $850-880/mt CFR, compared to $850-860/mt CFR last week. “Some market players expect further HRC price growth considering the still much higher prices from other suppliers and the ongoing rise in slab prices and the expected absence of Ukrainian and Russian slab suppliers from the spot market,” a market insider stated.
During the given week, HRC prices in the Chinese domestic market have seen big rises amid increasing HRC futures prices and the prevailing bullish sentiments among market players. Moreover, transaction activities have improved to some extent. Following the Winter Olympics, production restriction measures in China have eased, resulting in the rising supply of HRC. It is expected that HRC prices in the Chinese domestic market will edge up in the coming week.
Domestic HRC prices in China are at RMB 4,980-5,070/mt ($790.5-804.5/mt) ex-warehouse on March 1, with the average price level RMB 107/mt ($17/mt) higher as compared to February 22, according to SteelOrbis’ data.
As of March 1, HRC futures at the Shanghai Futures Exchange are standing at RMB 5,079/mt ($806/mt), rising by RMB 229/mt ($36.3/mt) or 4.7 percent since February 22.
$1 = RMB 6.3014
