HRC prices in Asia reach peak for now following numerous deals

Thursday, 04 June 2020 17:10:31 (GMT+3)   |   Istanbul
       

After sharp rises in HRC prices in the import markets of Vietnam and China since last week and a number of deals signed at higher levels, sentiments have worsened today, Thursday, June 4, after futures prices fell in China.

Vietnamese customers accept price increase

According to market sources, most deals for HRC of different origins to Vietnam have been signed at $425-430/mt CFR this week for a total tonnage close to 150,000 mt, but some small lots have already been traded at above $430/mt CFR Vietnam. During last week, the tradable level was at $415-420/mt CFR.

A cargo of 40,000 mt of Russian HRC from the Baltic region was traded at $425/mt CFR to Vietnam in the middle of this week. Also, about 80,000 mt in total of Indian HRC was sold at $427/mt CFR, as SteelOrbis reported earlier. Another lot, of Indian HRC SAE1006, is rumoured to have been traded in the market at $430/mt CFR, but this information has not been confirmed by the time of publication. On Thursday, there have been reports that 10,000 mt of Indian HRC for August shipment have changed hands at $430-435/mt CFR, SteelOrbis has learned.

Some market sources believe that import HRC prices in Vietnam have space to rise up to $440/mt CFR Vietnam for August shipment. But some other sources believe that prices have already reached a peak and, without support from China, it will be hard for suppliers to increase prices further.

Demand for HRC in China starts to ease

Early this week, a cargo of Indian coils was traded to China at $428/mt CFR, as SteelOrbis reported earlier. Moreover, two lots from Turkey of 90,000 mt of HRC in total have been sold at the price equivalent to $425-430/mt CFR China, according to Turkey-based sources. At the same time, Asia-based traders have been saying that contracts have been closed at $5/mt CFR lower.

Offers from India are at $435/mt CFR China late this week, but Chinese traders have reported that there have been no deals above $430/mt CFR recently. “It is impossible as local prices are down,” a source said.

Average local HRC prices in China have declined by RMB 10/mt ($7/mt) today to RMB 3,655/mt ($515/mt) ex-warehouse. At the same time, HRC futures prices at Shanghai Futures Exchange have declined by RMB 59/mt ($8/mt) today to RMB 3,487/mt ($491/mt).    


Similar articles

Vietnam’s Hoa Phat and Formosa seek AD investigation on Chinese HRC

28 Mar | Steel News

Major steel and raw material futures prices in China - March 28, 2024

28 Mar | Longs and Billet

UAE’s HRC market still sluggish, offers from India fall slightly

27 Mar | Flats and Slab

Import HRC prices in Vietnam retreat again due to slump in China

27 Mar | Flats and Slab

Vietnam’s Hoa Phat produces nine millionth mt of HRC

27 Mar | Steel News

Major steel and raw material futures prices in China - March 27, 2024

27 Mar | Longs and Billet

HRC consumption in Mexico up 30.6 percent in January

26 Mar | Steel News

Local HRC prices sink further in Turkey

26 Mar | Flats and Slab

Import HRC prices to Pakistan decline in new ex-China offers, other suppliers avoid discounts

26 Mar | Flats and Slab

Ex-India HRC prices soften slightly amid slow demand globally

26 Mar | Flats and Slab