Hot-rolled coil prices across China’s domestic market edged lower on Friday July 16, while futures prices dropped to a one-week low following Beijing’s fresh pledge to ensure stable supply and prices for commodities.
Domestic
Eastern China (Shanghai): 5,860-5,900 yuan ($906-913) per tonne, narrowing downward by 20 yuan per tonne
Northern China (Tangshan): 5,710-5,720 yuan per tonne, up by 100-210 yuan per tonne
The Ministry of Industry and Information Technology said on Friday that it will work with related departments to ensure stable supply and prices for commodities and continue to crack down on illegal activities such as hoarding and speculation.
This statement weighed on market sentiment, knocking the most-traded HRC contract on the Shanghai Futures Exchange to a one-week low of 5,827 yuan per tonne in early afternoon trade.
The contract later recovered those losses, finishing the day at around two-month highs on support from an increasing likelihood of production limits, sources said.
Export
Fastmarkets’ steel hot-rolled coil index export, fob main port China: $913.16 per tonne, down by $0.63 per tonne.
Export prices were largely unchanged on Friday; some trading houses continued to hold back activity or kept their offers unchanged, at around $930 per tonne fob China.
Trading houses do not expect $930 to be an achievable level for deals of SS400 of common specifications because buyers overseas can find cheaper resources.
Market chatter
“We didn’t make export offers due to the absence of offers from mills. Mills said limited availability has forced them to prioritize the domestic market. They won’t accept export offers unless the prices are higher than domestic prices,” a Shanghai-based trader said.
Shanghai Futures Exchange
The most-traded October HRC contract closed at 5,952 yuan per tonne on Friday, down 10 yuan from Thursday’s close.
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