Although this week most Chinese HRC mills have been trying to maintain their offers at unchanged levels, several producers as well as Chinese traders have decided to go lower as most customers have kept lowering their bids, coupled with the decreases in HRC futures prices which have been affecting the market mood. Thus, most overseas sales have been reported with additional discounts.
Specifically, export offers for boron-added SS400 HRC from large Chinese mills have settled at $460-480/mt FOB, with a midpoint at $470/mt FOB, down by $5/mt week on week. However, according to sources, deal prices from mills have been estimated by most buyers at $460-465/mt FOB, against $465/mt FOB last week. Meanwhile, smaller mills have been offering their coils at $450-455/mt FOB, versus $455-465/mt FOB at the end of last week.
Meanwhile, the tradable levels for ex-China SS400/Q235 HRC have been estimated at $450-452/mt FOB, down by $5/mt over the past week. Offers for ex-China Q235 HRC in Vietnam have been estimated at around $465/mt CFR, compared to $468-470/mt CFR last week.
Furthermore, offers for ex-China Q195 HRC in Turkey have been estimated at $480-485/mt CFR levels, down by $5/mt week on week, while customers’ bids have been voiced at $475/mt CFR, according to sources.
Offers from Chinese suppliers for SS400 HRC to the Middle East have been heard at $480-490/mt CFR, against $490-495/mt CFR last week.
In the meantime, average HRC prices in the Chinese domestic market have moved down compared to the previous week amid decreasing HRC futures prices. In particular, domestic HRC prices in China have settled at RMB 3,270-3,500/mt ($454-486/mt) ex-warehouse on May 27, with the average price level RMB 70/mt ($9.74/mt) lower compared to that recorded on May 20, according to SteelOrbis’ data.
During the given week, HRC futures prices have moved down, exerting a negative impact on the prices in the spot market. At the same time, as the plum rainy season is approaching, market players are worried about the slump in demand growth, which also weakens the support for HRC prices. Meanwhile, raw material prices have moved down, negatively affecting HRC prices. It is thought that HRC prices in the Chinese domestic market will continue the downtrend in the coming week.
As of May 27, HRC futures at Shanghai Futures Exchange are standing at RMB 3,111/mt ($432/mt), decreasing by RMB 91/mt ($12.6/mt) or 2.84 percent since May 20, while down 1.33 percent compared to the previous trading day, May 26.
| Product | Spec | Quality | City | Origin | Price（RMB/mt） | W-o-w change |
| HRC | 5.75mm*1500*C | Q235B/SS400 | Shanghai | Angang | 3,500 | -70 |
| Tianjin | Baotou Steel | 3,270 | -50 | |||
| Lecong | Liuzhou Steel | 3,380 | -90 | |||
| Avg | 3,383 | -70 | ||||
| HRC | 2.75mm*1250*C | Q235B | Shanghai | Angang | 3,610 | -70 |
| Tianjin | Baotou Steel | 3,330 | -50 | |||
| Lecong | Angang | 3,460 | -90 | |||
| Avg | 3,466 | -70 |
$1 = RMB 7.1876