Ex-China HRC offers edge up, Vietnam agrees to buy at higher prices from India

Tuesday, 19 May 2020 12:27:27 (GMT+3)   |   Shanghai
       

The uptrend has continued in the Asian HRC market early this week, which has been connected with improvement in the Chinese domestic prices, higher ferrous metal futures and increase in tradable value for imported coils in Vietnam. Chinese exporters have increased prices, but have stayed not very competitive even as steelmakers from India have also increased their export prices for HRC.

Ex-India HRC offer prices have been heard at $425-430/mt CFR Vietnam, while South Korean and Japanese suppliers have increased offers to $430/mt CFR and above. A few deals have been already heard at $419-425/mt CFR Vietnam for ex-India coils this week. Though volumes have been unknown by the time of publication, most sources believe that contracts have been for small tonnages.

At present, export offers for boron-added SS400 HRC given by major Chinese mills are at $430-435/mt FOB for late July delivery, edging up by $5/mt compared to the end of last week following a stable trend seen in previous week.

“Raw materials, including semis and iron ore, have moved up, pushing up local HRC offer prices, also bolstering ex-China HRC offer prices, though buyers mostly holding a wait-and-see stance,” an international trader told SteelOrbis.

Domestic HRC prices in China are at RMB 3,570-3,680/mt ($504-519/mt) ex-warehouse on May 19, with the average price level RMB 190/mt ($27/mt) higher as compared to May 12, according to SteelOrbis’ data. 

HRC futures prices at Shanghai Futures Exchange (SHFE) have seen an overall upward trend in the given week, positively affecting HRC market. As of May 19, HRC futures at the Shanghai Future Exchange are standing at RMB 3,469/mt ($489.3/mt), increasing by RMB 136/mt ($19.2/mt) or 4.0 percent since May 12.  

$1 = RMB 7.0912


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