Ex-China HRC prices have been corrected down once again this week, with market sentiment remaining weak amid further declines in HRC futures prices. Besides, additional downward pressure has come from newly returned non-VAT traders, whose offers were heard at least $40/mt lower than those from big Chinese mills, further weighing on market confidence.
Specifically, the price range for boron-added SS400 HRC from large Chinese mills has remained stable at $465-480/mt FOB, with a midpoint at $472.5/mt FOB, mainly for December shipment, down by $5/mt since the beginning of last week. Meanwhile, offers from smaller mills have been voiced mainly at $460-465/mt CFR, compared to $465-470/mt CFR last week.
At the same time, offers from most Chinese traders have been voiced at $460-465/mt FOB, down by $5/mt on the higher end of the range week on week, while, according to sources, offers from non-VAT traders have been voiced at as low as $450/mt FOB, down by $5/mt week on week.
In particular, ex-China 2,000 mm Q235/SS400 HRC offers in Vietnam have been voiced at $480/mt CFR, down by $3-5/mt week on week. Besides, according to sources, offers for Q235 HRC in Pakistan have been voiced at $467-470/mt CFR, down by $5-6/mt over the past week.
Meanwhile, Chinese offers to other destinations like the Middle East have settled at $490-495/mt CFR UAE with a few deals reported to have been signed at the above levels, compared to $500-505/mt CFR last week.
Besides, Chinese Q195 HRC offers to Turkey have been estimated at $490/mt CFR from Chinese suppliers with VAT. However, offers from non-VAT Chinese sellers have dropped to $475/mt CFR.
In the meantime, average HRC prices in the Chinese domestic market have edged down further compared to the previous week amid declining HRC futures prices. In particular, domestic HRC prices in China have settled at RMB 3,310-3,410/mt ($466-480/mt) ex-warehouse on October 21, with the average price level RMB 30/mt ($4.2/mt) lower compared to that recorded on October 14, according to SteelOrbis’ data.
During the given week, HRC prices in the Chinese domestic market have edged down amid declining HRC futures prices. Cautious sentiments have prevailed among market players. Downstream users have mostly concluded purchases in line with their daily needs, exerting a negative impact on the HRC market. Lately, iron ore prices have edged down, weakening the support for steel prices. However, coke prices are expected to increase soon, which will bolster HRC prices from the cost side.
As of October 21, HRC futures at Shanghai Futures Exchange are standing at RMB 3,219/mt ($453/mt), decreasing by RMB 22/mt ($3.1/mt) or 0.7 percent since October 14, while decreasing by 0.31 percent compared to the previous trading day, October 20.
| Product | Spec | Quality | City | Origin | Price（RMB/mt） | W-o-w change |
| HRC | 5.75mm x 1,500 x C | Q235B/SS400 | Shanghai | Angang | 3,410 | -40 |
| Tianjin | Baotou Steel | 3,310 | -30 | |||
| Lecong | Liuzhou Steel | 3,360 | -20 | |||
| Avg | 3,360 | -30 | ||||
| HRC | 2.75mm x 1,250 x C | Q235B | Shanghai | Angang | 3,520 | -40 |
| Tianjin | Baotou Steel | 3,370 | -30 | |||
| Lecong | Angang | 3,440 | -20 | |||
| Avg | 3,443 | -30 |
$1 = RMB 7.093