Following yesterday’s return of Chinese suppliers to the market on quite a positive note, today, Wednesday, October 9, the market has shown a sharp drop amid the decline in HRC futures prices as China’s National Development and Reform Commission (NDRC) disappointed investors by withholding major new stimulus measures, despite expressing confidence in meeting the country’s economic targets for the year.
More specifically, export offers for boron-added SS400 HRC from large Chinese mill have been voiced at $530-545/mt FOB, with a midpoint at $537.5/mt FOB, up by $7.5/mt since the last official offers on September 30, but down by $10/mt as compared to yesterday’s indicative offers. Meanwhile, offers from smaller mills have been voiced at $516-530/mt FOB, against $535-545/mt FOB yesterday, with the lower end of the range corresponding to offers from a Chinese supplier, Anfeng Steel.
Meanwhile, the tradable prices for ex-China SS400/Q235 HRC have been estimated at $516-525/mt FOB, versus $535-550/mt FOB yesterday and $520-540/mt FOB two weeks ago. The lower end of the range corresponds to ex-China Q235/SS400 HRC offers to Vietnam at around $530/mt CFR, down by $20-25/mt since yesterday, while welcome bids have been reported at $520/mt CFR.
Furthermore, according to market insiders, offers for ex-China Q195 HRC have decreased to $560-565/mt CFR levels in Turkey, versus $585-590/mt CFR yesterday. “The much-awaited Chinese policymakers’ meeting vastly disappointed market expectations. The Chinese authorities failed to deliver stimulus details and local stock markets tumbled,” a market insider said.
Meanwhile, after some increase yesterday, today average HRC prices in the Chinese domestic market have indicated significant decreases amid falling HRC futures prices after the Chinese authorities failed to deliver stimulus details. In particular, domestic HRC prices in China have settled at RMB 3,700-3,760/mt ($524-532/mt) ex-warehouse on October 9, with the average price level RMB 130/mt ($18/mt) lower compared to that recorded on October 8, according to SteelOrbis’ data.
As of October 9, HRC futures at Shanghai Futures Exchange are standing at RMB 3,571/mt ($505/mt), decreasing 3.56 percent compared to the previous trading day October 8.
$1 = RMB 7.06405