Posted on 21 Aug 2024
Chinese export prices for commercial-grade hot-rolled coils (HRCs) lost ground again in the past week, tracking the continuous decline in domestic prices of the flat product. The export price of SS400 4.75mm HRC under Mysteel's assessment on August 16 slumped $25/tonne on week to $462/t FOB from North China's Tianjin port.
Pessimistic sentiment pervaded the domestic HRC market, with prices falling through the week. This in tandem led Chinese steelmakers to lower their export HRC quotations, Mysteel's weekly market roundup noted.
Early last week, Chinese export quotations for SS400 3mm HRC dropped by $15/t on week to around $472-485/t FOB, and the prices then slipped further to $454-480/t FOB later in the week. Mysteel heard that there were deals for this grade concluded at $454/t FOB from North China's Jingtang port.
Meanwhile, Chinese mills' export offers for Q195 HRC were at $480-485/t CFR Vietnam, lower from $488-491/t CFR in the prior week. A deal was concluded for Q195 HRC at $485/t CFR Vietnam early last week. There were also orders for SS400, Q235, and Q195 HRC reached at prices of $458-465/t CFR Vietnam last Wednesday, steel traders told Mysteel.
Despite the sharp drops in China-origin hot coil prices, overseas buying was limited due to tepid demand. Many buyers stood on the sidelines and showed little interest in inquiries, market participants said.
Besides, Vietnam, a major consumer of Chinese steel products, initiated an anti-dumping (AD) investigation into imports of certain Chinese HRCs in late July, which dampened local buyers' appetite for Chinese hot coils.
Fearing that the government might impose retroactive AD duties in October, buyers in Vietnam were more active in inquiring about Chinese HRCs for September shipment, local steel traders told Mysteel.
Chinese hot coils for October shipment were offered at prices of $458-465/t CFR Vietnam last week, but the purchases were rather slow given the ample supply of such cargoes, and the prices may fall further this week.
On August 16, Vietnamese steel giant Formosa Ha Tinh Steel also reduced its SAE1006 HRC prices for domestic sales by about $40/t on month to $528-540/t CIF Ho Chi Minh City (dollar equivalent) for September and October delivery, depending on the volumes booked.
By the same day, China's export price for SPCC 1.0mm cold-rolled coil had dropped by $12/t on week to $538/t on FOB Tianjin basis, according to Mysteel's assessment.
Source:Mysteel Global
