The pricing of HRC in China's retail country declined on October 21st as a decrease in HRC futures and ongoing sluggish liquidity. In order to ensure purchases in a weak marketplace, European steelmakers have continued to offer HRC at discounted pricing for December shipment. According to reports, purchasers' mindset is leaning into chance purchasing instead of long term deals for collective bargaining in 2023.
Let us support and share with you in this blog your business decision during this down-trend market around the world closing the month October 2022.
China
The price for HRC in China domestic market fell to RMB 3,870/t ($535/t) on Oct 21st, down by RMB 80/t ($11/t) from a week ago due to the fall of HRC future and continued weak demand. Similarly, China's HRC export offers lower by $10/t week-on-week to $580/t FOB China amid the depreciation of Chinese currency AND low demand for Chinese-origin HRC.
Japan
Japan's largest EAF steel producer has decided to roll over the prices for H-beam for October domestic spot sales, extend the same price level for 6 months since April, though the company said it would consider lifting prices to transfer the rise in production costs from next month.
Europe
European steelmakers have continued to offer HRC for December delivery at discounted prices in an attempt to secure sales in a slow market. The transacted prices for HRC on Oct 19th in Northern Europe was reported at EUR700/t ($702/t) delivered, that is equivelent of EUR670/t ex-work with delivery cost in Europe about $30/t. However, some mills have been offering higher prices for January-February delivery, and others have been holding back from price announcements for the first quarter of next year.
America
HRC prices in the US slightly increased by $11/MT on Oct 18th to reach $836/Mt ($760 per short ton) with high competition on price offers among steel mills. For next year contract negotiation, it is reported that buyers' sentiment was shifting more toward spot buying rather than long term contract.
Viet Nam
Prices of rebar and steel wires in Vitenam domestic market were stable at around $600/ton for wire rods and $605/ton for rebar. Due to high inventory and low demand, steel mills in Vietnam tried to cut the price so the construction steel prices in Vietnam dropped by $50/ton within a month and fell to the current level that equivalent the price level of 2 years ago.
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