Ex-China HRC offer prices from mills have moved sideways in the past week and trading in the export market has slowed down, while the situation in the local market has continued to improve. Domestic prices have increased as demand has improved and sentiment has been better after the RRR cut in China announced from December 15.
At present, export offers for boron-added SS400 HRC given by major Chinese mills are at $800-820/mt FOB for January shipment, with a midpoint at $810/mt FOB, moving sideways compared to November 30. “The positive trend in HRC futures prices has exerted a good impact on market players’ sentiments and bolstered ex-China HRC prices,” an international trader told SteelOrbis.
The tradable price level for SS400 coils has been heard at $800/mt FOB lately from large mills and at $775-785/mt FOB from traders and smaller producers. The letter is $5/mt higher compared to the previous week.
During the given week, China’s local HRC prices have seen faster rises amid the rebounding trend of ferrous metal futures prices. At the same time, iron ore prices have also increased, bolstering HRC prices from the cost side. It is thought that HRC prices in the Chinese domestic market will likely edge up in the coming week.
Domestic HRC prices in China are at RMB 4,790-4,950/mt ($752-777/mt) ex-warehouse on December 7, with the average price level RMB 105/mt ($16.5/mt) higher as compared to November 30, according to SteelOrbis’ data. Compared with the price level on Monday, December 6, average local quotations are RMB 45/mt ($7.1/mt) higher.
As of December 7, HRC futures at the Shanghai Futures Exchange are standing at RMB 4,634/mt ($727.5/mt), increasing by RMB 46/mt ($7.22/mt) or 1.0 percent since November 30.
$1 = RMB 6.3738