The Asian HRC market rose on November 30th as Chinese factories increased their prices in line with market expectations in the midst of a strong domestic market. Although ripple effects were seen in Southeast Asia due to tight supply.
Current SS400 HRC estimates
Currently SS400 HRC 3 mm are estimated at $590 $/ mt FOB China. 6 $/ mt more than on November 27. On a South East Asian CFR basis, the same grade of coil was valued at $591 $/ mt, an increase of $10 $/ mt over the same period.
Chinese mills raise prices
Several Chinese plants increased their weekly export prices by $15-$25/mt over the previous week for deliveries from February to April. This was in line with market expectations. Other plants are expected to follow on December 1. This was due to the strong recovery and tight supply in overseas markets.
Currently, the price is driven by overseas demand. Demand is growing faster than supply.
As a result, purchasers caught up over several weeks as mills were unwilling to negotiate as their export allocation quickly dried up.
The weakening of the USD is believed to be one of the underlying reasons for the strong Chinese prices.
Source: steelbb.com
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