Ex-China HRC offer prices have moved up slightly amid the positive expectation for the trend in the local market, certain rises seen in HRC futures prices, and strong raw material prices.
At present, export offers for boron-added SS400 HRC given by major Chinese mills are at $705-745/mt FOB for April shipment, with a midpoint at $725/mt FOB, moving up by $2.5/mt on average compared to February 23.
The reference deal price has increased by $15/mt over the past week to $700/mt FOB. For instance, a deal, according to sources, for SS400 coils has been concluded at $715/mt CFR or close to $700/mt FOB to Vietnam. The majority of mills are asking for $710-720/mt FOB minimum as they are optimistic about demand and prices in March.
In addition, the latest deal for SAE1006 HRC from China to Vietnam has been at $720/mt CFR, according to sources.
“The increases in global scrap prices and iron ore prices exerted a positive impact on ex-China HRC offer prices, while buyers have been willing to accept higher prices, and bullish sentiments have prevailed among exporters,” an international trader told SteelOrbis.
During the given week, HRC futures prices have moved up, positively affecting prices in the local market. However, inventory of HRC has increased.
Domestic HRC prices in China are at RMB 4,800-4,880/mt ($743-755/mt) ex-warehouse on March 2, with the average price level RMB 25/mt ($3.9/mt) higher as compared to February 23, according to SteelOrbis’ data. Compared with the price level on Monday, March 1, local quotations are RMB 25/mt ($3.9/mt) higher.
As of March 2, HRC futures at the Shanghai Futures Exchange are standing at RMB 4,907/mt ($760/mt), increasing by RMB 108/mt ($16.7/mt) or 2.25 percent since February 23.
$1 = RMB 6.4625
