In this note, we report on Metal Bulletin regarding the latest rate fluctuations in China hot rolled steel coil in the trading market. Prices in the markets are expected to decline due to the continuation of China’s control policies. This is evident throughout China’s steel supply chain. In the following, we will deal with the trading details of this product. Please be with Artan Press.
*** Hot rolled coil price China Metal Bulletin
China’s hot-rolled coil prices fell further on Wednesday (May 26th) in domestic and export markets amid parallel market activity. The decline is likely to continue in the next few months due to price suppression in China’s regulatory policies. China seeks to overtake its economic rival, the United States, in industrial infrastructure. It was a few days ago that China sent its first planetary Voyager to Mars. This was one of the examples of China’s Cold War against the United States. In such a situation, China desperately needs cheap raw materials. Due to the recent rise in prices due to rising demand, only China has agreed to control prices.
*** Evaluate the price trend of China hot rolled coil in the domestic market
In East China and Shanghai markets, China’s hot-rolled coil fell in value from $ 2,209 to $ 5,220 ($ 809 to $ 816 per tonne), to 220-260 yuan per tonne from the previous trading day. . HRC shareholders were selling materials from their warehouses to raise capital flows to pay off their arrears. This also increased the pressure on the supply side, otherwise this relative fall in prices in the current situation was a little unexpected. Therefore, with the last days of May approaching and investors’ payments approaching, there is more pressure to sell in China’s hot-rolled coil sector.
*** Reasons for the drop in the price of China hot rolled coil
As mentioned, the need to sell has put downward pressure on HRC prices and has stabilized buyers’ expectations of lower prices. Therefore, it is predicted that this rate reduction in China’s domestic hot-rolled coil market will be accompanied by a drop in demand. Losses in futures markets have put more pressure on prices. Some market participants think that due to the support of downstream demand of the company, the price of HRC could return soon after a sharp drop in a short time.
*** A pervasive drop in the price of long sections
Prices on May 26 fell from 1490 to 1,510 yuan per tonne (22-23%) from a record high of 6,680-6,710 yuan per tonne on May 12. This price drop has occurred in almost all international markets. The price of steel, due to the emotional growth of the price of iron ore, took a growing emotional path in a short period of time. But over time, market inflammation has eased. The rolling field also made good use of this issue. But with the rationalization of the trading process, we are witnessing double-digit declines in world steel prices, especially in China.
*** Take a look at the export status of China hot rolled coil
Exports of hot-rolled steel coils were also traded at $ 882 per tonne in China’s main ports, according to estimates made at the Metal Bulletin analytical site. This figure is about a 10% reduction from the previous price chart. According to market participants, the operating prices of steel mills for HRC are around $ 880-890 per tonne FOB, which is higher than on Tuesday. The loss in the local market decreased by $ 10 per ton.
*** Regulatory pricing in Chinese industrial policy
As stated at the beginning of the analysis, Chinese prices in international markets have fallen by a higher percentage. Due to China, it has started selling cheaply for its steel industry in the domestic market. In this situation, however, buyers refuse to buy heavily or place a new order in the hope of further price drops. Concerns over whether China will impose export tariffs on HRC discourage exporters and importers from trading in one- or two-month shipments.
*** Branches in the Chinese steel market
This issue is being discussed and debated as a common branch in the Chinese steel market among investors. “If I sell a consignment this week and it will be shipped in two months, I will declare the consignments at the customs in June or July. If the export tariff is made after the export contract is signed before the order is registered at the customs, “I will lose the risk-taking transition.”
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