Ex-China HRC offer prices have edged up slightly amid the rising trend in the local market and the increases seen in HRC futures prices in China over the past week amid good expectations as regards the future prospects for the market after the long holiday.
At present, export offers for boron-added SS400 HRC given by major Chinese mills are at $665-700/mt FOB for April shipment, with a midpoint at $682.5/mt FOB, moving up slightly by $2.5/mt on average compared to February 2.
Deals, according to sources, were reported for ex-China SS400 grade HRC at the wide range of $630-670/mt FOB last week depending on the sales destination and $650/mt FOB on average has been the tradable level, though most market players have left the market for the holiday since mid-last week.
A higher workable price level has been seen for SAE1006 HRC from China as well. Market sources said that that last week rare firm offers were heard at $670/mt CFR from traders for this grade to Vietnamese buyers. “There were no cheap position cargoes in Vietnam [late last week, when some activity still existed ahead of the holiday],” a source said, adding that this week negotiations have already stopped. Though Vietnamese importers were mainly inactive in purchases last week, the tradable value improved from $650-655/mt CFR to $660-665/mt CFR.
“Market participants thought China will resume trading activities quickly after the long holiday as most workers have been required to stay at where they work due to prevention and control of Covid-19, while bullish sentiments have been seen in the futures market and the stock market,” an international trader told SteelOrbis.
During the given week, HRC prices have seen sharp rises amid the increasing trend in HRC futures prices. Downstream users are off for the Chinese New Year holiday (February 11-17), resulting in quiet activities. However, market players are optimistic towards the prospects for the future HRC market after the long holiday, which will bolster prices. Domestic HRC prices in China are at RMB 4,400-4,650/mt ($682-721/mt) ex-warehouse on February 9, with the average price level RMB 90/mt ($24/mt) higher as compared to February 2, according to SteelOrbis’ data. Compared with the price level on Monday, February 8, local quotations are RMB 40/mt ($3/mt) higher.
As of February 9, HRC futures at the Shanghai Futures Exchange are standing at RMB 4,616/mt ($716/mt), increasing by RMB 309/mt ($48/mt) or 7.2 percent since February 2.
$1 = RMB 6.4533
