Ex-China export HRC prices up further, supporting sentiment in Asia

Tuesday, 13 October 2020 16:59:21 (GMT+3)   |   Istanbul
       

Ex-China HRC offer prices have moved up further amid rising HRC prices in the local Chinese market owing to better demand and prevailing bullish sentiments among market players. As a result, the tradable value for imported HRC in the major Asian import markets like Vietnam and Pakistan have also increased.

At present, export offers for boron-added SS400 HRC given by major Chinese mills are at $510-535/mt FOB for December shipment, moving up by $10/mt on average compared to last week and up $5/mt on average from last Friday.

Tradable price for Chinese HRC higher, but still competitive in Asia

The tradable value for SS400 HRC from China has also gone up, to $510/mt FOB, sources have said, while it was at $500/mt FOB on average before the holidays.

Offers for ex-China SS400 HRC have been heard at $530/mt CFR Pakistan against a deal at $518/mt CFR before the holidays. SAE1006 coils from China have been available at $540/mt CFR in Pakistan for late December shipment, sources reported.

A fresh deal for Chinese SAE1006 coils has been signed to Vietnam at $525/mt CFR this week, up by $9/mt from the previous contract reported last Friday. “Since the appreciation of the Chinese currency is expected, buyers in the export market have been willing to accept higher offer prices of ex-China HRC, especially amid the rising offer prices of HRC of other origins in Vietnam,” an international trader told SteelOrbis. Ex-South Korea and ex-Japan HRC has been offered at $545/mt CFR Vietnam, up by $5/mt week on week. Offer prices of ex-Taiwan HRC have been heard at $550/mt CFR. Indian mills are still offering at $540-545/mt CFR to Vietnam. “Chinese traders are still the most competitive with $525/mt CFR,” a local source in Vietnam said.

Chinese domestic market price moves up before stabilizing on Tuesday

During the past week, HRC prices in the Chinese domestic market have seen big rises amid the production restriction policy issued in Tangshan and stock replenishments following the long holiday. Bullish sentiments have prevailed among market players. At the same time, inventory of HRC has increased slightly.

Domestic HRC prices in China are at RMB 3,900-3,940/mt ($579.5-585.4/mt) ex-warehouse on October 13, with the average price level RMB 95/mt ($14/mt) higher as compared to September 30, according to SteelOrbis’ data. Domestic prices have been stable on Tuesday, October 13, compared to the previous day.

As of October 13, HRC futures at the Shanghai Futures Exchange are standing at RMB 3,784/mt ($539.5/mt), increasing by RMB 110/mt ($16.3/mt) or 3.0 percent since September 29.

$1 = RMB 6.7296


Similar articles

European HRC prices keep falling, demand still shows signs of fatigue

28 Mar | Flats and Slab

Vietnam’s Hoa Phat and Formosa seek AD investigation on Chinese HRC

28 Mar | Steel News

Major steel and raw material futures prices in China - March 28, 2024

28 Mar | Longs and Billet

UAE’s HRC market still sluggish, offers from India fall slightly

27 Mar | Flats and Slab

Import HRC prices in Vietnam retreat again due to slump in China

27 Mar | Flats and Slab

Vietnam’s Hoa Phat produces nine millionth mt of HRC

27 Mar | Steel News

Major steel and raw material futures prices in China - March 27, 2024

27 Mar | Longs and Billet

HRC consumption in Mexico up 30.6 percent in January

26 Mar | Steel News

Local HRC prices sink further in Turkey

26 Mar | Flats and Slab

Import HRC prices to Pakistan decline in new ex-China offers, other suppliers avoid discounts

26 Mar | Flats and Slab