Improving sentiment and rising prices in China ‘s domestic market for hot-rolled coils translated to gains in export prices of the coils during the week of December 4-8, Mysteel’s weekly market roundup shows.
As of December 8, the export price of Chinese SS400 4.75mm HRC under Mysteel’s assessment had risen by $5/tonne on week to reach $570/t FOB from North China’s Tianjin port. On the same day, the export price of Chinese SPCC 1.0mm cold-rolled coil had also moved higher by $10/t on week to $658/t, also on FOB Tianjin basis.
Amid improving market expectations and rising production costs for China’s mills, especially for raw materials, domestic spot and futures prices for hot coils climbed during last week, so it was inevitable that export prices of the flat products would follow suit, market watchers said.
However, the mismatch between rising prices and feeble overseas demand for Chinese hot coils resulted in sparse transactions during the survey period, sources noted.
For example, in Vietnam, although some traders made purchases to meet their immediate needs, most buyers there still held a wait-and-see stance about procuring China-origin flat products, according to Vietnamese traders.
Meanwhile, in discussions with buyers in Saudi Arabia, Chinese steelmakers concluded some deals for their hot coils priced at $650/t CFR, unchanged from one week before, Mysteel Global heard.
