Chinese hot rolled coil (HRC) export offers have seen slight rises during the past week as sales volumes have been still healthy and overall sentiments in Chinese local market have been firm.
At present, export offers for boron-added SS400 HRC given by major Chinese mills are at $495-500/mt FOB, up by $5/mt on average compared to last week, though some discounts could be negotiated, if buyers are bidding at $485-490/mt FOB.
There have been reports of a number of deals for SAE HRC from China at $510-515/mt CFR Vietnam, which corresponds to $500/mt FOB. “There have not been so many export offers heard from Chinese steelmakers, while offer prices have still been firm as exporters have been unwilling to gain orders at lower prices,” an international trader told SteelOrbis.
The local Chinese HRC market has fluctuated within a limited range recently. Domestic HRC prices in China were at RMB 3,770-3,900/mt ($541-560/mt) ex-warehouse on January 7, with the average price level RMB 10/mt ($1.4/mt) higher as compared to December 31, according to SteelOrbis’ data. “Transaction activities slowed down in the local market as it is approaching to the Chinese New Year holiday,” a trader said. In the given week, there have been seen some slight rises in the inventory level of HRC, though it is still at a comparatively low level, which may bolster HRC prices in the local market in the near future.
As of December 31, HRC futures at the Shanghai Future Exchange are standing at RMB 3,588/mt ($514.9/mt), decreasing by RMB 4/mt ($0.6/mt) or 0.11 percent since December 31.
$1 = RMB 6.969