Last week, HRC prices in China were on an upward track while prices in export markets did not show a significant increase and declined slightly in some regions.
On Friday afternoon in Shanghai, 5.5x1,500mm Q235B HRC was trading at around CNY 3,180-3,200 per ton (around USD 446-448), reflecting a weekly increase of CNY 30 per ton (around USD 4).
The most-traded October 2024 HRC contract on the Shanghai Futures Exchange fell CNY 28 per ton (around USD 4) from Thursday but still rose CNY 58 per ton (around USD 8) on the week to CNY 3,219 (around USD 452).
In Wuxi, prices for 20x2,000mm Q235B sheets were steady at around CNY 3,250-3,270 per ton (around USD 457-459). A slight increase in local demand, coupled with a drawdown in HRC stocks, has helped domestic HRC prices recover from four-year lows. However, concerns remain due to high production levels and weakness in manufacturing industries, limiting overall market optimism.
The increase in domestic demand has lifted most export prices, with base HRC offers to Turkey rising above USD 500 per ton, while SAE 1006 HRC offers increased by USD 15-20 per ton for October shipments. However, buyers remained cautious, leading to stability in some regions and slight declines in tradable prices.
In Vietnam, 3-12mm Q235 HRC offers from Chinese mills were around USD 460 CFR per ton, the same level as last Friday. According to some sources, due to domestic price increases, Chinese sellers are now expected to accept only offers of USD 465 CFR Vietnam.
As of August 23, 2-2.7mm SAE grade HRC was valued at USD 475-480 CFR Vietnam per ton, and 2mm SAE 1006 HRC was valued at USD 475-480 FOB China per ton, both down USD 5 per ton from the previous week.
Furthermore, the trend to abandon export orders is making matters worse. Continuous price cuts are causing buyers to regret their previous high-priced orders, and this problem has also started to occur in billet orders after HRC orders.
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