Chinese export prices for commercial-grade hot-rolled coils (HRC) rose further during the week of March 23-27 to reach a 14-month high. However, overseas buying of Chinese coils was hampered by the spike in ocean freight rates, Mysteel Global learned.
On March 27, Mysteel assessed the export price of SS400 3mm HRC at North China's Tianjin port at $486/tonne FOB, up by another $2/t on week and marking a new high since January 27 last year.
Meanwhile, the recent pickup in domestic demand caused the mills to firm their pricing stance last week, with hot coil offers for export generally staying in the range of $480-500/t FOB China – with the upper end climbing by $5/t on week – while transaction prices mainly stood around $480-490/t FOB.
On the buying side, inquiries from overseas buyers have increased recently. Nonetheless, the jump in ocean freight costs amid the intensified Mid East tensions has prevented any notable pickup in actual deals, with most buyers staying on the sidelines and watching the latest shipping market movements, industry sources suggested.
In Southeast Asia, HRC offering prices for export also remained elevated. China-origin hot coils retained their competitiveness, with Chinese Q235 HRC bound for Vietnam quoted at $525/t CFR, while quotes for hot coils from other origins including Indonesia, Malaysia and India were being issued at around $540-570/t CFR Vietnam, Mysteel Global learned.
However, most Vietnamese buyers were still waiting for price direction from local steel mills, as Hoa Phat and Formosa Ha Tinh were expected to release their new pricing announcements early in April. Therefore, actual deals in the region were limited, with the market being dominated by wait-and-see sentiment.
In Saudi Arabia, import prices for HRC have also moved up, supported by tightening supply from the ongoing regional logistics disruptions. Mill offers are currently focused almost exclusively on deliveries to Jeddah port on the country's west coast, while arrivals at eastern ports have been significantly constrained by the prolonged conflict surrounding the Strait of Hormuz.
Imported prices for 1.2 mm HRC sat around $580-590/t CFR Saudi Arabia last week, up from the previous week's $565-580/t CFR. Chinese hot coils were being offered at around $590/t CFR Jeddah, serving as the primary market reference, market sources noted.
Some re-rollers and galvanizers in the Middle East have reported shortages of HRC substrate, indicating that supply chain disruptions were beginning to filter downstream, Mysteel Global learned.
Meanwhile, the uptrend in China's export price of SPCC 1.0mm cold-rolled coil at Tianjin port also continued last week, rising $4/t on week to $544/t FOB by last Friday, according to Mysteel's assessment.
Source:Mysteel
