Chinese mills have voiced higher offers for hot rolled coil (HRC) in the local and export markets on Friday, October 9, the first day after the holidays. Better domestic demand in China and the positive short-term outlook have supported the move. As a result, prices for imported HRC have edged up slightly in the major Asian markets like Vietnam.
Offers for SS400 HRC from Chinese mills and some traders have been at $500-535/mt FOB on Friday, up by $5/mt on average or increased by $10/mt on the upper end compared to September 30. Some steelmakers have started the work with offers at $535/mt FOB, showing their positive mood.
The workable level for ex-China SS400 HRC has moved up from $500/mt FOB on average before the holidays to $500-505/mt FOB.
A contract for SAE1006 HRC from China has been signed at $516/mt CFR, up from the previous indication at $510-515/mt CFR. “We see higher prices, so bids are at $515/mt CFR [versus previous level at closer to $500/mt CFR],” a local source said.
Domestic HRC prices in China have increased by RMB 60/mt ($8.8/mt) today compared to September 30, to RMB 3,885/mt ($573/mt) ex-warehouse on average, according to SteelOrbis’ data. Market players have good expectations for October as it is still the traditional peak season and the weather is good for construction activities, as one source told SteelOrbis. Meanwhile, the production restrictions, mainly in northern China, also supported moods.
As of October 9, HRC futures prices at Shanghai Futures Exchange (SHFE) are standing at RMB 3,772/mt ($551/mt), up RMB 80/mt ($11.8/mt) or 2.25 percent from RMB 3,692/mt on September 30.
$1 = RMB 6.7796
