Chinese HRC prices decreased in the GCC

Prices of hot rolled coil imports from China for the Gulf Cooperation Council (GCC) fell ahead of the Lunar New Year holiday starting on 9 February.   

Official hot roll prices for late March and April shipments from first-tier mills in China are hovering around $605-610/tonne for 3 mm S235JR grade equivalent. For the second-tier non-silicon controlled pipemaking grade, prices are in the range of $580-585/ton. Traders are offering position cargoes for SAE1006 grade 2 mm and above from China's second-tier mills at around $615/tonne.  

Major Indian, Japanese and Taiwanese producers are keeping their starting prices for 2 mm SAE1006 grade steady at around $640-655/ton.   

Firm offers of up to $635/ton are being received from China, India and Japan, and up to $640/ton from Taiwan for April delivery. The market predicts that Japanese giant Nippon Steel will soon announce end-April shipment prices to the region at $650-655/ton, increasing its price to Europe to $710/ton cfr Western Europe as a reference. 

Another trader is offering cold-rolled full hard (CRFH) material of 0.35 mm and above from a second-tier Chinese mill at $620-623/ton for April delivery. Prices received confirm that the price difference between CRFH and HRC is $36-40/ton due to in-process costs.