China's HRC export prices rise again

China’s export price of SS400 3mm hot-rolled coil (HRC) under Mysteel’s assessment at North China's Tianjin port rose by $7/tonne during the week of February 2-6 to reach $470/t FOB by last Friday, Mysteel's latest market roundup showed.

The price rise was partly driven by limited hot coil availability for February as some Chinese mills had suspended taking new orders for February exports, with Chinese New Year (CNY) only two weeks away. Meanwhile, shrinking supply of non-VAT resources following the government's re-introduction of a steel export licensing system on January 1 has also narrowed buyers' room to push for lower prices, Mysteel Global noted.

Despite the firm export prices, transaction volumes have not increased. Market sources indicate that buyers in Southeast Asia and the Middle East have begun to focus on shipment schedules for after Ramadan, the Islamic holy month observed across much of Southeast Asia and the Middle East which this year will start around February 19 – roughly coinciding with the Chinese and Lunar New Year festivals this year.

Buyers of Chinese coil in Vietnam, South Korea, Taiwan, Malaysia, Singapore and elsewhere will also celebrate Lunar New Year or Spring Festivals at this time, with the result that some procurement needs have been delayed for April cargoes, market sources noted.

Meanwhile, during the survey week Indonesia's hot-rolled coil export offers to Vietnam remained stable, with FOB Morowali prices holding at $500/t, equivalent to around $515/t CFR Vietnam. Indonesian mills kept offers firm amid tighter regional supply, though sales into Vietnam were constrained by a wide bid-offer gap. At the same time, Vietnamese producers including Hoa Phat and Formosa Ha Tinh had raised their domestic HRC list prices for March/April deliveries, making for a more cautious tone in the import market.

In India, domestic HRC prices continued to strengthen, supported by tight spot availability, higher mill list prices and resilient demand. Market participants expect the supply tightness to persist in the near term, with prices likely to stay firm through March before potentially easing.

India's mainstream hot coil spot prices last week stood at INR 53,800/t ($594/t) EXW Mumbai, up INR 800/t ($9/t) on week. Export offers to Vietnam edged higher, with SS400/SAE1006 quoted around $500/t CFR Vietnam, while tradable levels remained slightly lower, leaving Indian resources competitively priced against local Vietnamese supply.

In the Middle East, import activities stayed subdued. Buyers in the UAE and Saudi Arabia largely adopted a wait-and-see approach amid ample inventories and uncertain price direction. Chinese HRC offers to the UAE stayed stable on week at $485-505/t CFR UAE, while Chinese 1.2mm HRC offers to Saudi Arabia showed firmness at $555-560/t CFR Saudi Arabia, supported by limited transactions and higher offers from some other origins.

Meanwhile, China's export price of SPCC 1.0mm cold-rolled coil at Tianjin port jumped by $8/t during the survey week to $528/t FOB by last Friday, according to Mysteel's assessment.

Source:Mysteel Global