China’s hot-rolled coil prices weakened on Tuesday October 13, allowing some exporters to cover their short positions and take profits.
*** China’s hot-rolled coil prices in domestic market
Eastern China (Shanghai): ۳,۹۲۰-۳,۹۴۰ yuan ($583-586) yuan per tonne, narrowing downward by 10 yuan per tonne
Several Shanghai-based traders said trading activity had weakened there on Tuesday, which dampened prices slightly.
One trader said it was because downstream buyers had less demand after restocking in the two days immediately after the end of China’s eight-day Golden Week national holiday.
A Tianjin-based trader said trading activity in the north was also weak, with price growth minimizing the profits of downstream consumers.
*** China’s hot-rolled coil prices in export market
Fastmarkets’ steel hot-rolled coil index export, fob main port China: $۵۱۱٫۴۲ per tonne, down $0.06 per tonne
A Zhejiang-based trader said he had bought some HRC from a northern China-based mill at around $510 per tonne fob earlier this week, and that he expects several major mills to accept $510 per tonne fob if buyers place orders.
He said many traders had been replenishing goods from mills this week to cover positions they had entered last month.
***December-delivery HRC
These traders had sold cargoes around mid-September when overseas buyers could accept around $515 per tonne fob for December-delivery HRC.
Although mills have officially been offering material at $۵۲۰-۵۳۵ per tonne fob this week, the Zhejiang-based trader said some would accept lower prices amid weakening domestic prices on Tuesday.
On Monday, it would have been hard to persuade mills to accept prices below $515 per tonne fob, but by Tuesday, the trader said, several major mills had indicated they would accept $510 per tonne fob – thereby helping traders to close out the deals they signed last month with a profit.
***Market chatter for China’s hot-rolled coil prices
“Market sentiment remains mixed. Although prices weakened today, I believe some traders are worrying about possible price rallies, which motivated them to replenish on Tuesday – otherwise they could [end up paying higher prices] in the next few days,” a Shanghai-based trader said.
***Shanghai Futures Exchange
The most-traded January HRC futures contract closed at 3,784 yuan per tonne on Tuesday, up by 11 yuan per tonne from Monday.
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