China’s hot-rolled coil prices climbed further on Wednesday May 12, continuing to set new historical highs amid inventory losses, and motivating exporters to raise offers day by day.
Domestic ***
Eastern China (Shanghai): ۶,۶۸۰-۶,۷۱۰ yuan ($1,039-1,044) per tonne, up by 110-180 yuan per tonne
Spot sellers in Shanghai raised their offers amid strong futures prices, with several Shanghai-based traders reporting steady trading activity from the day before.
Investors remained interested in the ferrous sector in high demand season, one trader said.
According to a survey by his company, major warehouses in Shanghai had a total of 404,200 tonnes of HRC as of Wednesday, down by 4,900 tonnes from 409,100 tonnes the week prior.
Producers are enjoying profit margins of 1,000-1,500 yuan per tonne in the HRC sector, a second Shanghai-based trader said.
Export ***
Fastmarkets’ steel hot-rolled coil index export, fob main port China: $1,062.37 per tonne, up $20.59 per tonne
Shagang Group, based in eastern China, was offering HRC at $1,100 per tonne fob on Wednesday, up by $40 per tonne from $1,060 per tonne fob on Tuesday, according to a company source.
Inner Mongolia-based Baotou Iron & Steel was offering at $1,040 per tonne fob, up by $5 per tonne from $1,035 per tonne fob previously, while eastern China-based Shandong Iron & Steel’s offers were at $1,115 per tonne fob, up by $5 per tonne from $1,110 per tonne fob.
A Hong Kong-based trader heard that some other traders booked HRC in China at around $1,040 per tonne fob earlier this week, but no other sources confirmed such deals.
Market participants believe prices below $1,065 per tonne fob would be hard to get, due to domestic ex-works prices being at an equivalent level.
Indian sellers were offering rerolling HRC at $1,070-1,080 per tonne cfr Vietnam, based on Chinese prices.
Market chatter ***
“We traders with inventories could accept slightly cheaper prices, but I think after such fast price gains, most of us won’t accept prices below $1,000 per tonne fob China,” a Zhejiang-based trader said.
Shanghai Futures Exchange ***
The most-traded October HRC futures contract closed at 6,683 yuan per tonne on Wednesday, up by 143 yuan per tonne from Tuesday.
این مطلب بدون برچسب می باشد.
ثبت دیدگاه