October 12, 2008

Chinese HRC prices firming up

It is reported that hot rolled steel coil prices continue to creep northward in China and the market is getting stronger. In Shanghai market, commercial 4.5mm to 11.5mm HRC prices increased to CNY 4150 per tonne to CNY 4180 per tonne, which is a step away with the year high of CNY 4220 per tonne.

As per report, the sentiments point that HRC prices would hit new high sooner or later. If commodity grade 4.5mm to 11.5mm HRC could goes past CNY 4200 per tonne, then it would move forward to CNY 4400 per tonne to CNY 4500 per tonne in the near future.

As per report, export prices are also on the rise. Most steel makers have raised offer for Q235 or SS400 HRC to USD 550 per tonne on FOB basis and S235JR or S275JR to USD 560 per tonne to USD 565 per tonne on FOB basis.

A North China based steel maker told Mysteel that “We are offering SS400 4.5mm to 11.5mm in 1500mm width HRC at USD 550 per tonne on FOB basis, 1600mm to 2000mm wide material at USD 565 per tonne on FOB basis and S275JR HRC export prices to Europe is no lower than USD 565 per tonne on FOB basis for November shipment."

Some steel makers are reluctant to export due to surge in domestic prices. On the other hand, overseas customers are not fully ready to accept updated quotations citing that their local prices are not rising as fast as in China. European buyers say that China is not the exclusive supplier in the world and they could import from other countries like Russia and India. Also there has been rumor on anti-dumping on Chinese steel products recently. However, it is almost certain that HRC export prices would go up further and importers would have to accept in the end.

(Sourced from MySteel.net)