During the week ending October 22, Chinese hot rolled coil (HRC) export offers have decreased by $2.5/mt on average compared to October 15. At present, export offers for boron-added SS400 HRC given by Chinese mills are at $425-455/mt FOB. One mill in northern China have been offering at $425/mt FOB, while the lowest level heard in offers last week was at $435/mt FOB. However, even after the decline, ex-China prices remain much higher compared to offers from India and Russia.
As a result, some Chinese mills are not interested in exports because they are not ready to offer very low prices. One major mill from southeastern China has offered HRC at $455/mt FOB, which reflects its decision not to sell abroad. “Most mills do not have a plan to export as their prices are not competitive enough,” an international trader told SteelOrbis.
Moreover, HRC prices in the local market have moved down over the past week due to slack demand and the prevailing cautious mood on the future prospects for the HRC market.
During the past week, domestic HRC prices in China have decreased to RMB 3,500-3,610/mt ($495-511/mt) ex-warehouse, with the average price level as of today, October 22, RMB 35/mt ($5/mt) lower as compared to October 15. Local prices are stable compared to the previous trading day, October 21. Meanwhile, HRC futures prices in China have declined by 0.54 percent on October 22 compared to October 15, to RMB 3,313/mt ($469/mt).
$1= RMB 7.067