Ex-China HRC offer prices are at a high level this week, following the rapid rise over the past week and deal prices have been on the rise. The appreciation of the Chinese currency and fresh gains in the local market have contributed to the traders’ bullish outlook for ex-China HRC.
At present, export offers for boron-added SS400 HRC given by major Chinese mills are at $545-575/mt FOB, moving sideways on average compared to November 10. The deal prices have reached $550-555/mt FOB for different sales destinations, with South American buyers being active, up by $15-20/mt compared to the previous week. “The rising trend in HRC futures prices and the appreciation of the Chinese currency have bolstered ex-China HRC prices,” an international trader told SteelOrbis.
Deals to Vietnam from China for SAE1006 have been heard at $565/mt CFR ($555/mt FOB) and a further slight increase is possible, taking into account that other suppliers have hiked offers and that the supply shortage in the market persists. Japanese producers have been offering HRC at $600/mt CFR Vietnam, up by another $20/mt.
During the given week, the increasing movement of HRC futures prices in China has exerted a positive impact on local HRC prices amid the prevailing bullish sentiments and the appreciation of the Chinese currency. Meanwhile, the relatively low levels of inventory and tight supply have provided solid support for HRC prices. Domestic HRC prices in China are at RMB 4,000-4,130/mt ($608-628/mt) ex-warehouse on November 17, with the average price level RMB 25/mt ($3.8/mt) higher as compared to November 10, according to SteelOrbis’ data, with the week-on-week increase mainly due to the rise of RMB 45/mt recorded today, November 17.
As of November 17, HRC futures at the Shanghai Futures Exchange are standing at RMB 4,053/mt ($616/mt), increasing by RMB 120/mt ($18.3/mt) or 3.05 percent since November 10.
$1 = RMB 6.5762
