Prices of hot-rolled coil in China’s domestic market edged lower on Tuesday July 27 and futures prices fell due to Covid-19 concerns and stock price tumbles weighing on market sentiment, sources told Fastmarkets.
Eastern China (Shanghai): 5,880-5,900 yuan ($907-910) per tonne, down by 10-20 yuan per tonne
The most-traded HRC contract on the Shanghai Futures Exchange slipped after hitting an intraday high of 6,046 yuan per tonne and finished the day lower than Monday’s close.
Market sentiment soured slightly on Tuesday due to a surge of local Covid-19 infections in the eastern province of Jiangsu, a tumble in the stock market and Beijing’s reiteration of the pledge to ensure stable supply and prices for commodities, a Hangzhou-based trader said.
The National Bureau of Statistics said in its monthly report of industrial profits released on Tuesday morning that Beijing will step up its efforts to ensure stable supply and commodities prices for the markets; profit margins at enterprises are still squeezed by high commodity prices.
Adverse weather, meanwhile, muted trading activities across the domestic HRC spot market, a Shanghai-based source said.
Fastmarkets’ steel hot-rolled coil index export, fob main port China: $919.14 per tonne, unchanged
Export prices were unchanged on Tuesday – the market remained quiet amid uncertainty surrounding China’s export tax policy.
Most trading houses continued to halt offers. Both buyers and sellers prefer to wait until August 1 to see if the Chinese government will impose a tax on HRC exports or remove tax rebates for cold-rolled coil and hot-dipped galvanized coil.
An eastern mill continued to offer its SS400 HRC at $1,000 per tonne fob China, but no deals have been concluded.
The offer from a northern mill stood at $1,030 per tonne fob China, unchanged from a week earlier. The price is negotiable.
Another mill in east China cut its offer price for SS400 HRC to $1,020 per tonne fob China for the week to July 27, down $10 from the previous week. The previous week’s price of $1,030 was negotiable.
Offers from smaller mills stood at $940-950 per tonne fob China, while some trading houses were offering at $925.
“While the fears of export tax policy changes resurface every month, we remain cautious. We prefer to be in a wait-and-see mode until August 1,” a second Hangzhou-based trader said.
“Some mills and trading houses are even moving their cargoes to bonded warehouses to avoid the potential losses from the export tax changes,” a second Shanghai-based trader said.
Shanghai Futures Exchange
The most-traded October HRC contract closed at 5,896 yuan per tonne on Tuesday, down 94 yuan from Monday’s close.
این مطلب بدون برچسب می باشد.