Ex-China HRC prices from mills have been mostly stable despite the recovery in local prices, while traders’ export prices have been varying depending on the destination with more sales reported both in Asia and the Middle East. Besides, Indian HRC exporters have started to push for more deals globally at lower price levels, especially to the Middle East, to the GCC in particular, where import activity has revived significantly this week as purchasers have been seeking to restock. Meanwhile, other markets have been less active in terms of purchases and sales, with uncertainty prevailing in Vietnam’s HRC import market, while Turkey’s HRC prices have remained weak amid slow demand and cautious sentiment. HRC prices in the EU have remained relatively stable amid slow trade, but regional mills are targeting hikes for January delivery to €600/mt ex-works and higher.
Although average HRC prices in the Chinese domestic market have indicated some rises in the past week amid the slight recovery in HRC futures prices, Chinese HRC exporters have been less positive so far, with both big mills and traders keeping their offers for overseas buyers mostly stable, with a slight upward bias seen only in offers from a number of traders in Asia, in Vietnam in particular. At the same time, prices from Chinese traders to the Middle East have on the contrary declined in the new deals signed this week. Specifically, export offers for boron-added SS400 HRC given by major Chinese mills have settled at $500-520/mt FOB, with a midpoint at $510/mt FOB, the same as last week. At the same time, the tradable prices for SS400/Q235 HRC have been estimated at $495-510/mt FOB, up by $5/mt on the lower end of the range week on week. Offers for ex-China SS400 HRC have been voiced at around $540/mt CFR and slightly above in the Gulf region, mainly the same as last week. However, according to sources, deal prices have declined this week. In particular, after a deal for around 20,000-25,000 mt of ex-China SS400 HRC was signed at $525/mt CFR UAE for late November-early December shipment, another deal has been signed with a UAE-based tube maker at around $530/mt CFR for shipment in December. Domestic HRC prices in China are at RMB 3,610-3,660/mt ($507-514/mt) ex-warehouse on November 1, with the average price level RMB 55/mt ($8/mt) higher compared to that recorded on October 25, but down by RMB 25/mt ($3.5/mt) from the previous days, according to SteelOrbis’ data.
This week, most Indian HRC suppliers have been trying aggressively for export orders especially in the Middle East, Nepal, Bangladesh and even in Southeast Asia, with prices showing a slight downward bias in new deals as compared to last week. Specifically, ex-India HRC prices have been voiced at $520-545/mt FOB, against $525-565/mt FOB last week. Most offers for ex-India HRC in the Middle East have been voiced at around $560/mt CFR, which corresponds to around $520-525/mt FOB, down by $5-10/mt week on week. At the same time, according to sources, this week demand for HRC has increased significantly in the Middle East region, with deals for around 20,000-25,000 mt each reported to have been signed at $550/mt CFR UAE and $560/mt CFR. Meanwhile, more deals for smaller quantities have been reported for ex-India HRC in Nepal at $560-570/mt delivered to border, which translates to around $525-530/mt FOB, the same as last week, and in Bangladesh at around $530-535/mt FOB.
While trade activity has remained slow, import HRC prices in Vietnam have remained relatively stable this week for SAE1006 HRC though they have indicated a slight recovery for Q235/SS400 amid fluctuations in HRC futures prices, coupled with continuing slow demand from end-users in the country. The SteelOrbis reference price for import SAE1006 HRC has settled at $525-535/mt CFR, against $520-540/mt CFR last week, given offers for Chinese SAE1006 HRC have been estimated at $525/mt CFR, against $520-525/mt CFR last week. Meanwhile, offers for ex-China Q235/SS400 HRC have been voiced at $510-515/mt CFR, against $500-505/mt CFR last week. Besides, according to sources, even a few deals have been signed at $513/mt CFR, up by $10/mt week on week.
Turkey’s local HRC prices have slid by around $5/mt over the past week to $610-625/mt ex-works base for December-January deliveries, while demand has remained rather slow. Buyers are unsure about restocking in large volumes, given the weak import scrap market and the decreases in China. HRC export offers from Turkey have also declined, by $10/mt on the lower end to $575-590/mt FOB, with no demand seen from European customers in particular. Import offers from China have stabilized at $538-545/mt CFR depending on the tonnage and the supplier. The material is Q195 steel grade of 3 mm and higher, and for January deliveries. Last week, the offers stood at $530-540/mt CFR, while the latest deals have been reported at $525/mt CFR to a re-rolling company. Aside from China, Egypt is also in the market, offering HRC at $620/mt CFR Turkey for December shipment.
In the GCC, some import activity has been observed this week, with customers in the UAE and Saudi Arabia in particular purchasing large quantities of goods. Chinese suppliers did two separate deals with Emirati buyers, for 20,000-25,000 mt of SS400 HRC at $525/mt CFR for late November-early December shipment, while a UAE-based tube maker purchased at about $530/mt CFR for December shipment. However, current offers from China to the UAE have decreased by $5/mt to $530-540/mt CFR for December shipment. Indian suppliers, on the other hand, have sold 20,000-25,000 mt of HRC to the UAE and Saudi Arabia this week at $550-560/mt CFR for December shipment, while some Indian mills continue to offer to the UAE at the earlier prices of $570-580/mt CFR. Further deals have been done with Taiwanese and Japanese suppliers. Based on the information received, Taiwan sold some HRC lots to the GCC at $538 CFR, while Japan sold 20,000-25,000 mt of HRC to the UAE at $535/mt CFR, down $15/mt week on week.
The range of domestic coil offer prices from European mills has remained mostly unchanged for December delivery, given the lack of demand in the region, coupled with high stocks, which are leading to tight competition between distributors and service centers. More specifically, offers from mills both in northern Europe and in Italy have remained relatively unchanged at €570-580/mt ex-works for December delivery. However, tradable prices in Italy are still voiced at €550/mt ex-works, the same as last week, while a number of transactions have been reported in northern Europe at €550-570/mt ex-works, up by €10/mt on the higher end of the range week on week. At the same time, most mills are still targeting price increases for January delivery coils to levels of €600/mt ex-works and higher, which are considered by most market players as “unlikely to be achievable” given that the steel market outlook continues to worsen for the EU market as demand and consumption decline amid the large share of imports in the market. In the import segment, most European customers have been holding back due to uncertainty over the future price trend, and dumping and quota risks, while most prices have moved sideways over the past week. Offers from Asian HRC suppliers have been estimated at €550-580/mt CFR, compared to €555-575/mt CFR last week. Besides, offers for ex-Turkey HRC have been reported at €585-600/mt CFR, including duty, versus €590-610/mt CFR last week.