Posted on 31 Jan 2023
During the Chinese New Year (CNY) holiday over January 21-27, prices of Chinese hot-rolled coil (HRC) for export kept tracking north, supported by the rise in prices of HRC products and raw materials in the home market, Mysteel Global learned.
As of January 28, a substitute working day throughout China for the CNY holiday, the export price of SS400 4.75mm HRC under Mysteel's assessment had gained $5/tonne from January 20 to reach $635/t FOB from North China's Tianjin port.
Meanwhile, the export price of SPCC 1.0mm cold-rolled had also increased by $5/t on week to reach $700/t FOB, also from Tianjin port.
Positive expectations about improved HRC trading conditions after the CNY break appeared in both China's home and overseas markets, resulting in higher HRC prices, market watchers said.
For example, by January 28, China's national Q235 4.75mm HRC price under Mysteel's assessment was settled at Yuan 4,260/t ($630.9/t) including the 13% VAT, gaining Yuan 37/t from the last working day before the holiday.
In addition, strengthening prices of raw materials also contributed to the uptrend in export prices of Chinese HRC.
By January 28, Mysteel SEADEX 62% Australian Fines had increased by $2.35/dmt from January 20 to reach $126.85/dmt CFR Qingdao, while the Mysteel PORTDEX 62% Australian Fines index in Qingdao had also risen by Yuan 16/wmt during the same period to Yuan 889/wmt FOT and including the 13% VAT.
With the rise in prices, transactions involving China-origin HRC in the Asian market remained flat as both exporters and buyers were cautious about trading and so retreated to the market's sidelines, one trading source observed.
Source:Mysteel Global
