WEEKLY: Chinese HRC export prices continue to wane
As of March 15, the export price of Chinese SS400 4.75mm HRC under Mysteel's assessment had declined for four consecutive weeks to $525/t FOB from North China's Tianjin port, losing $15/tonne on week. By the same day, the export price of China-origin SPCC 1.0mm cold-rolled coil had also dropped by $20/t on week to sit at $618/t, also on FOB Tianjin basis.
Dull sentiment and weakened raw materials prices together saw China's domestic HRC prices decrease last week, which in tandem prompted Chinese steel producers to continue to cut their export offering prices for their hot coils, Mysteel's roundup noted.
For example, some steel mills in North China clipped their export quotations for Q195 HRC by another $15/t on week to $515/t CFR Vietnam, yet trading of the flat product was sparse, according to Mysteel's tracking.
Overall, bearish sentiment pervaded among Vietnamese steel users after they saw the continuous declines in price, a Vietnamese steel trader explained, adding that the users were generally cautious about buying Chinese flat products during the survey week.
In fact, their appetite for domestic hot coils was also weak last week, Mysteel's roundup found.
According to its latest price revision published on March 18, Vietnam's major steel group, Formosa Ha Tinh Steel (FHS), has cut its HRC prices for domestic sales for April delivery by $10-20/t from prevailing levels to $567-590/t CIF Ho Chi Minh City (dollar equivalent).
However, FHS's prices have found little acceptance among many local buyers who preferred to hold relatively low inventories at hand and just purchase on immediate demand, sources noted.
Meanwhile, in the Middle East the start of Ramadan caused the region's hot coil market to quieten. In discussions with buyers in the region last week, Mysteel heard that tier-one Chinese steelmakers priced their hot coils at $595-600/t CFR and tier-two makers offered at $570-580/t CFR, both lower by $10/t on week. But no deal was reached.
Written by Carly Chen, chenziyi@mysteel.com
Edited by Russ McCulloch, russ.mcculloch@mysteel.com
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