Due to an improvement in the local market and gains in HRC futures, steel mills in China increase their offer for HRC export at a higher price than the price the previous week. As the market demand is still weak, steel mills in Northern Europe were providing HRC at a discount to ensure sales volumes.
We would like to share with you our up-to-date knowledge to support your business decision during this fluctuating market trend around the world.
Steel mills in China raise the offer for HRC export by $7/t higher than the price in the previous week to $612/t FOB due to improvement in the domestic market and gains in HRC futures. Similarly, steel billet prices in China's domestic market rose by RMB 60/t ($9/t) in one week to Yuan 3,770/t ($559/t) on August 12th, including 13% VAT, amid steelmaker lifted the scrap prices by Yuan 200/t ($30/t) for all grades.
Steel plate prices have been rising slowly in Japan, but it's expected the prices raise further with improving demand from the construction sector when the market returns from the long holiday this week. In the spot market, heavy steel plate SS400 grade was transacted at JPY 146,000/t ($1,084/t) on August 09, up by JPY 1000/t ($7.4/t) from a month earlier. Steel mill was trying to up the price to transfer the rise in production costs and to reflect the supply tightness.
Steel mills in Northern Europe continued to offer HRC at a discount to secure sales volumes as the market demand is still weak. The price of HRC was transacted at EUR 770/t Ex-works for larger volumes, with the smaller quantity the price was settled around EUR 800/t Ex-works. In Southern Europe, the price of HRC was stable at EUR 770/t Ex-works Italy, but the market was quiet due to capacity reductions and slow trading during the holiday season.
A top US steel producer raised the price for HRC by $55/MT ($50/short-ton) on August 10 despite the trend of declining prices in the US market, implying the market floor has been found. The new price for HRC was at $935/MT ($850/short-ton) after the adjustment. It is expected that other mills will follow as HRC prices has been dropped by 47.7% from the peak level in April.
Prices for imported HRC into Vietnam have increased significantly by $30-60/t over the previous week due to supply constraints and the increase in Chinese domestic HRC prices. However, the from imported HRC in Vietnam's domestic market continues to remain low. Chinese HRC was offered at around $630/t CFR Vietnam port and the Indian HRC was also offered the same level. Meanwhile, rebar prices was stable at $685/t on August 12.
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- Steel Market Move
- HRC prices