Ex-China HRC offer prices have moved sideways despite the declines in iron ore prices, decreases in futures prices and the downtrend in the local HRC market.
At present, export offers for boron-added SS400 HRC given by major Chinese mills are at $735-770/mt FOB for April shipment, with a midpoint at $752.5/mt FOB, moving sideways on average compared to late last week.
Deals, according to sources, were reported for ex-China SS400 grade HRC at $740/mt FOB last week, but only for limited volumes for distant destinations like South America. The general tradable level, mainly for the Asian market, is at $715-720/mt FOB maximum, according to sources. After the increase seen last Wednesday, prices have not changed much.
Bids for import SAE1006 HRC in the Vietnamese market have improved to $745/mt CFR, but Chinese sellers are asking mainly for $770/mt CFR Vietnam, while some have voiced prices at even $800/mt CFR. Prices from Indian exporters have been more competitive in Vietnam with sales at $740-745/mt CFR last week and possible levels at $750-755/mt CFR for now. Other Asian HRC suppliers like Taiwan and S. Korea have been asking for $780-800/mt CFR, while Japanese mills have still been insisting on $830/mt CFR and above.
“The overall downtrend in ferrous metal futures prices has dragged down local HRC prices in China, while exporters have chosen to hold their offer prices stable. Buyers have been cautious and unwilling to conclude purchases,” an international trader told SteelOrbis.
During the given week, HRC futures prices have moved down, exerting a negative impact on HRC prices in the spot market. Meanwhile, inventory of HRC has risen slightly amid the resumption of production. At the same time, iron ore prices have seen sharp declines on Tuesday, March 9, putting pressure on HRC prices.
Domestic HRC prices in China are at RMB 4,840-4,860/mt ($741-744/mt) ex-warehouse on March 9, with the average price level RMB 10/mt ($1.5/mt) higher as compared to March 2, according to SteelOrbis’ data. But compared with the price level on Monday, March 8, local quotations are RMB 110/mt ($16.8/mt) lower.
As of March 9, HRC futures at the Shanghai Futures Exchange are standing at RMB 4,820/mt ($738/mt), decreasing by RMB 87/mt ($13.3/mt) or 1.77 percent since March 2.
$1 = RMB 6.5338
