Posted on 17 Jan 2024
During the week of January 8-12, Chinese export prices of commercial grade hot-rolled coils (HRC) declined after the previous week's short-lived gain, Mysteel's weekly market roundup has found.
As of January 12, the export price of Chinese SS400 4.75mm HRC under Mysteel's assessment had eased by $8/tonne on week to sit at $567/t FOB from North China's Tianjin port. By the same day, the export price of China-origin SPCC 1.0mm cold-rolled coil had also moved lower by $4/t on week to $658/t, also on FOB Tianjin basis.
Last week, major Chinese steel producers including state-owned mills firmed their export offer prices for SS400 HRC at $580-600/t FOB, unchanged from the prior week, according to Mysteel's tracking.
For their part, however, overseas buyers preferred lower-priced China-origin hot coils, market sources noted. For example, Chinese steel mills tabled their offering prices for SAE1006 HRC at $610/t CFR to Vietnam, while local buyers made some agreements at $600/t CFR and below, Mysteel heard.
In fact, Vietnam buyers also asked for lower-priced Indian hot coils last week, but no deals involving large tonnage were apparently concluded, sources said. Indian steelmakers last week resumed their HRC export offers to Vietnam, with prices at $635/t CFR Ho Chi Minh City, while Vietnamese buyers preferred $600/t and below.
Since last summer, Indian steelmakers had largely held back HRC export offers to Vietnam, as they paid more attention to their domestic steel market where margins were better, Mysteel Global noted.
In parallel, according to a latest price revision released on January 12, Vietnam's major steel group, Formosa Ha Tinh Steel (FHS), has raised its monthly HRC prices for domestic sales by $20/t on month to $645-655/t CIF Ho Chi Minh City (dollar equivalent) for late March and early April delivery.
Rising raw materials prices, increased competition and the price hike announced by another leading Vietnam steelmaker, Hoa Phat Steel, were factors behind FHS's price revision, sources believed.
Source:Mysteel Global
