Prices for ex-China HRC have rebounded from the lows seen early this week, which has been connected mainly with more production curbs announced by mills, and costs support with higher iron ore prices. This has also supported moods in SE Asia, but most buyers agree that the prices will hardly rise further with demand inside China and in Asian region has been subdued and will hardly improve soon.
The Chinese tradable SS400 HRC price level (from small mills and traders) has added $7/mt since early this week, rebounding to $492-494/mt FOB. There have been two sales for Chinese HRC to Turkey at $530-535/mt CFR base, meaning that the previous level of $485-487/mt FOB was confirmed in deals, but after than and seeing some less oversupply pressure, most exporters have withdrawn too these low levels. “There are more overhauls announced by mills and the market lacks the direction, so it is possible that prices will stick in the current range,” a Chinese trader said.
Large Chinese mills have been offering at $502-505/mt FOB, up from $495-500/mt FOB earlier this week. “I do not see this as an increase; mills just voiced their target not to cut prices anymore. Yongfeng was at $505-506/mt FOB for some week already [in late June-early July],” a Chinese source said.
The latest offers for Chinese SAE1006 HRC have been reported at $534-540/mt CFR to Pakistan form the lowest deal price level at $530/mt CFR reported a week ago. But “I still hear negotiations from Benxi at $530/mt CFR,” a source from Pakistan said. “Even $530/mt CFR won’t work today, even though customers saw futures rises over last 2 days, which pushed up offer prices,” a Singapore-based trader said. For Q195/SS400 HRC offers in Pakistan, they have been heard at $518-523/mt CFR as the lowest versus previous level of $512-513/mt CFR in deals and $515/mt CFR in offers.
