Posted on 01 Nov 2023
Facing weak demand for hot-rolled coils in the international market, prices of Chinese HRC for export declined during the week of October 23-27, Mysteel's latest market roundup shows.
As of October 27, the export price of Chinese SS400 4.75mm HRC under Mysteel's assessment was at $525/tonne FOB from North China's Tianjin port, lower by $3/t on week. On the same day, the export price of China-origin SPCC 1.0mm cold-rolled coil had also fallen on week, dipping by $7/t to reach $623/t, also on FOB Tianjin basis.
Overseas demand for hot coils remained dull last week with no apparent signs of a pick-up emerging soon, export sources noted. The market's torpor led Chinese steelmakers to cut their offering prices for export hot coils to attract sales, though trading activity stayed slack, they said.
For example, China-origin SS400 HRC was quoted at $520/t FOB to Southeast Asia, down by $5/t on week, according to industry insiders, yet buyers there were not persuaded by the discounts and continued preferring locally made flat products.
Symptomatic of the feeble HRC demand, Vietnam's steel giant Formosa Ha Tinh last week cut its price for SAE1006 HRC for domestic sale to $560-570/t (dollar equivalent) CIF Ho Chi Minh City for December shipment, down by $10-20/t on month.
Meanwhile, in the Middle East, geopolitical conflict continued to dampen the flat steel market, with only a few deals being reached during last week, Mysteel Global understands.
Chinese steel mills lowered their offering prices for hot coils to Saudi Arabia by $10/t on week to $620-630/t CFR, yet no deal involving large tonnage was heard.
Meanwhile, most countries maintained their quotations for HRC to Turkey largely flat last week, where buying for imported hot coils also stayed quiet. Offers for China-origin HRC stood at $560/t CFR and for South Korean coils at $595/t CFR, but no agreements were apparently concluded, sources said.
Source:Mysteel Global
