Ex-China HRC offer prices have edged down over the week ended January 18, amid the sharp drop in futures prices and the lack of strength of the local market. Nevertheless, trading in the export destinations has not improved as prices are still uncompetitive.
At present, export offers for boron-added SS400 HRC given by major Chinese mills are at $765-775/mt FOB for March shipment, with a midpoint at $770/mt FOB, moving down by $10/mt compared to January 11. “HRC futures prices have edged down over the past few days, weakening the support for ex-China HRC offer prices,” an international trader told SteelOrbis.
The tradable price level for SS400 coils has been heard at $750-760/mt FOB lately, but trading has been poor. The workable price level for SAE1006 HRC from Chinese small mills and traders has been reported at $760-770/mt FOB.
During the given week, HRC prices in the Chinese domestic market have indicated slight rises. As the Chinese New Year is approaching, demand for HRC has remained sluggish, while some buyers may build up stocks ahead of the long holiday, which will bolster prices in the coming week, sources believe.
Domestic HRC prices in China are at RMB 4,730-4,920/mt ($745-775/mt) ex-warehouse on January 18, with the average price level RMB 10/mt ($1.57/mt) higher as compared to January 11, according to SteelOrbis’ data.
As of January 18, HRC futures at the Shanghai Futures Exchange are standing at RMB 4,709/mt ($742/mt), decreasing by RMB 10/mt ($1.57/mt) or 0.21 percent since January 11. HRC futures posted sharp losses on January 17, when they fell by RMB 94/mt, but on January 18 they rebounded, though not sufficiently to offset the previous decline.
$1 = RMB 6.3521