Export offers of HRC from Japan are assessed in the range of USD 500-530/MT, FoB Japan whereas Chinese HRC export offers have also gained momentum by USD 25/MT, W-o-W.
Chinese flat steel market opened this week with hike in export and domestic prices. Chinese manufacturers have raised the HRC export offers by USD 25/MT W-o-W owing to sharp increase in futures market.
Current offers of HRC export market are assessed in the range of USD 510-520/MT, FoB China for Feb/Mar shipments. Whereas last offers were recorded in the range of USD 490-495/MT, FoB basis.
Meanwhile prices of HRC in domestic market are hovering in the range of RMB 3,740-3,800/MT, up by RMB 50-60/MT, which is equivalent to USD 542-551/MT.
Futures markets in China recorded sharp hike last week. However, gains in future market led to positive sentiment in the export market. This provided enough room for the Chinese manufacturers to increase prices.
Although trading remains sparse as the manufacturers are generating more profit from the domestic offers. Moreover they are reluctant to export HRC below the domestic prices. So no trade offers are settled yet.
Hence, any news regarding demand and supply before the end of Chinese New Year(end of Jan’17) will lead to fluctuation in prices. A market participant shared that Chinese steel mills are restocking steel coils anticipating price surge after Chinese New Year which may further boost export offers.
Global HRC Export Offers-
Export offers of HRC from Japan are assessed in the range of USD 500-530/MT, FoB Japan. Whereas import offers of HRC of South Korea origin are heard to be in the range of USD 570-580/MT, CFR China for Feb/Mar shipments.
However, the Indian exporters are exporting HRC in the range of USD 510-520/MT, FoB India.
Export Offers of HRC as on 16 th Jan’2017
|
Particulars |
HRC |
| FoB China | 510-520 |
| FoB Black sea | 490-500 |
| Fob India | 510-530 |
| Fob Japan |
520-530 |
Prices in USD/MT
Source-SteelMint Research
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