Posted on 10 Jul 2024
After declining for four straight weeks, Chinese export prices of commercial grade hot-rolled coils (HRCs) finally gained some ground last week, while export transactions of the flat product stayed sparse, Mysteel's weekly market roundup shows.
As of July 5, the export price of SS400 4.75mm HRC under Mysteel's assessment inched up by a small $2/tonne on week to $527/t FOB from North China's Tianjin port.
Both Chinese steel mills and traders firmed their HRC quotations for exports last week. For example, a steel producer in Northeast China kept its export quotation for SS400 HRC steady on week at $530/t FOB, ending the prior four weeks' declines.
Meanwhile in North China's Hebei province, China's top steel production base, some steel traders hiked their export offering prices for Q195 HRC by $4/t on week to $516/t CFR Vietnam, for August shipment, according to Mysteel's tracking.
The on-week rises in their HRC export prices were mainly supported by the increases in China's domestic hot coil prices, Mysteel's roundup noted.
The derivatives of major ferrous commodities in China, including HRC, iron ore and coke, all strengthened for most of the past week, partly due to improved weather conditions in eastern and southern China and market expectations for favorable policies to be announced at the country's Third Plenary Session of the 20th Communist Party of China Central Committee over July 15-18.
The rise in steelmaking raw materials prices also helped underpin hot coils prices on the cost front, Mysteel's roundup added.
However, overseas buyers turned cautious about purchasing China-origin hot coils after noting the increase in their prices last week.
On July 1, Vietnamese steel major Hoa Phat Steel Group (HPG) clipped its local SAE1006/SS400 HRC prices for August and September delivery by around $12/t to $550-551/t CIF Ho Chi Minh city (dollar equivalent). Local buyers in Vietnam preferred HPG's hot coils over imported sources as they expected a further price cut from the steelmaker, Mysteel heard.
By July 5, the export price of China-origin SPCC 1.0mm cold-rolled coil had stayed unchanged on week at $582/t on FOB Tianjin basis, according to Mysteel's assessment.
Source:Kallanish
