Ex-China hot rolled coil (HRC) export prices have shown mixed signals in the past week, with major mills widening their offer range by $10/mt on the lower end. At the same time, while some traders have raised offers slightly to destinations such as Vietnam, buyers’ price ideas have largely stayed unchanged from last week. As a result, the overall price direction in the export market remains uncertain, with September demand showing little improvement in China’s domestic market, while pressure persists from weak buying interest and unresolved inventory issues.
Specifcially, the price range for boron-added SS400 HRC from large Chinese mills has broadened by $10/mt on the lower end of the range, moving at $470–490/mt FOB, with a midpoint at $480/mt FOB, mainly for November shipment. “Most mills have been offering their HRC at $470-480/mt FOB, including Rizhao, Anshan and Benxi, compared to $480/mt FOB last week, while offers from a few mills like Shougang have been voiced at $490/mt FOB,” a market insider told SteelOrbis.
At the same time, while offers from most Chinese traders have been voiced at $475-485/mt FOB, up by $5/mt week on week, most bids and actual deals have remained at 470-480/mt FOB levels, the same as last week. In particular, ex-China Q235/SS400 HRC, 1,900-2,000 mm, offers in Vietnam have been voiced at $500-503/mt CFR for November shipment, compared to $497-500/mt CFR last week. However, most customers’ bids are still voiced at $495-497/mt CFR.
Meanwhile, Chinese offers to other destinations like the Middle East have settled at $500-510/mt CFR UAE, mainly the same as last week. Besides, Chinese Q195 HRC offers to Turkey have remained at $515-520/mt CFR, though market insiders estimate the workable levels at $505/mt CFR and above.
In the meantime, average HRC prices in the Chinese domestic market have edged down compared to the previous week amid decreasing HRC futures prices. In particular, domestic HRC prices in China have settled at RMB 3,450-3,690/mt ($486-520/mt) ex-warehouse on September 23, with the average price level RMB 20/mt ($2.8/mt) lower compared to that recorded on September 16, according to SteelOrbis’ data.
During the given week, HRC prices in the Chinese domestic market have indicated a downward trend. Since super typhoon Ragasa is going to hit Guangdong Province in southern China, market players have started to be cautious as regards the future prospects for the HRC market, weakening the support for prices. Meanwhile, HRC futures prices have moved down, exerting a negative impact on prices in the spot market. However, since the National Day holiday (October 1-8) is approaching, market players still look forward to stock replenishments from downstream buyers, which may bolster HRC prices to a certain degree.
As of September 23, HRC futures at Shanghai Futures Exchange are standing at RMB 3,340/mt ($470/mt), decreasing by RMB 62/mt ($8.7/mt) or 1.8 percent since September 16, while decreasing by 1.33 percent compared to the previous trading day, September 22.
| Product | Spec | Quality | City | Origin | Price（RMB/mt） | W-o-w change |
| HRC | 5.75mm*1500*C | Q235B/SS400 | Shanghai | Angang | 3,690 | -20 |
| Tianjin | Baotou Steel | 3,450 | -20 | |||
| Lecong | Liuzhou Steel | 3,520 | -20 | |||
| Avg | 3,553 | -20 | ||||
| HRC | 2.75mm*1250*C | Q235B | Shanghai | Angang | 3,800 | -20 |
| Tianjin | Baotou Steel | 3,510 | -20 | |||
| Lecong | Angang | 3,600 | -20 | |||
| Avg | 3,636 | -20 |
$1 = RMB 7.1057
