China’s hot-rolled coil prices were largely stable on Wednesday August 5 in spite of reports of buyers in Vietnam paying higher prices for imports.
***Domestic
Eastern China (Shanghai): 4,060-4,070 yuan ($582-583) per tonne, unchanged
Several traders told Fastmarkets that domestic prices were stable on Wednesday amid moderate trading activity. The stability was attributed to buyers’ expectations of weakening prices once cargoes from northern China – the country’s steelmaking hub – arrive in the eastern region over the next 2-3 weeks, since they would result in higher supply.
Traders in eastern China booked large quantities of HRC from Tangshan, in northern China, recently due to ex-works prices there being around 200 yuan per tonne lower than spot prices in eastern China.
***Export
Fastmarkets’ steel hot-rolled coil index export, fob main port China: $۴۹۵٫۴۷ per tonne, up $0.21 per tonne
A Vietnam-based trader said a stockist had booked around 100,000 tonnes of October-delivery re-rolling-grade HRC recently at around $500 per tonne cfr Vietnam. This is equivalent to around $490 per tonne fob China. A Shanghai-based trader said he had also heard the same, adding that these might be Chinese product, though he could not confirm this.
The possibility of buyers in Vietnam being willing to pay such a price, or even higher, made market participants more optimistic about Chinese HRC exports.
A Zhejiang-based trader said that he had also heard about buyers in Pakistan being willing to pay higher prices, based on a transaction involving small quantities of SS400 HRC being concluded at $515 per tonne cfr Pakistan on Tuesday.
This is equivalent to around $495 per tonne fob China and marks an increase from a transaction price of around $505 per tonne cfr Pakistan last week. HRC importers in China have been quiet in recent days. A second Zhejiang-based trader said sellers were offering Indian cargoes at $505-510 per tonne cfr China this week, but few Chinese buyers were interested.
***Market chatter
“Vietnam’s demand for HRC is growing. The rainy season is coming to an end and the Covid-19 situation has improved. We might be able to accept higher prices in the next few days,” the Vietnam-based trader said.
***Shanghai Futures Exchange
The most-traded October HRC futures contract closed at 3,911 yuan per tonne on Wednesday, down by 9 yuan per tonne from Tuesday.
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