Ex-China HRC offer prices have moved sideways in the past week and, even though futures prices in China have rebounded recently, they have failed to provide much support for sentiment.
At present, export offers for boron-added SS400 HRC given by major Chinese mills are at $770-790/mt FOB for March shipment, with a midpoint at $780/mt FOB, remaining stable compared to December 28. “HRC futures prices moved down first, while indicating a rebounding trend on January 4, affecting the market,” an international trader told SteelOrbis.
The tradable price level for SS400 coils has been heard at $760/mt FOB lately, while some mills hope to get $770/mt FOB.
During the given week, HRC prices in the Chinese domestic market have risen slightly amid the fluctuating trend of HRC futures prices. But demand for HRC has remained sluggish, while downstream users have been unwilling to build up stocks. Prices have been supported by the recent rises in futures and coke prices. It is thought that HRC prices in the Chinese domestic market will likely fluctuate within a limited range in the coming week.
Domestic HRC prices in China are at RMB 4,700-4,890/mt ($737-767/mt) ex-warehouse on January 4, with the average price level RMB 35/mt ($5.5/mt) higher as compared to December 28, according to SteelOrbis’ data.
As of January 4, HRC futures at the Shanghai Futures Exchange are standing at RMB 4,499/mt ($705/mt), increasing by RMB 57/mt ($8.93/mt) or 1.3 percent since December 28.
$1 = RMB 6.3794