It is reported that HRC market appears upward signs since March as demand becomes a bit more, price goes up and traders are confident of bullish future.
Mr Li Shuangzhong GM of Shanghai Ruikun Metal Material Co Ltd thinks that HRC market price will continue the rising tendency in Shanghai.
Mr Li’s market investigation shows that HRC market price had CNY 50 per tonne to CNY 100 per tonne of rise in Shanghai in the first week of March. Iron ore price went up uplifting mills production cost. Due to this, mills kept factory price advance, increasing traders’ purchasing cost. Meanwhile, steel export turned better recently end users released their demand after the Spring Festival; mills gave less supply to traders than what they ordered. As a result, cost swelled and inventory decreased. It’s expected that HRC price will keep going up this week in Shanghai.
On the weekend of March first week, Mr Li Company offered Baosteel made 1.8mm SPHC HRC at CNY 4600 per tonne up by CNY 50 per tonne from the week before
1. 2.0mm HRC at CNYB 4530 per t up by CNY 50 per tonne
2. 2.75mm HRC at CNY 4300 per tonne up by CNY 100 per tonne
3. 3.0mm HRC at CNY 4250 per tonne up by CNY 100 per tonne
4. 4.0mm HRC at CNY 4230 per tonne up by CNY 100 per tonne
5. 4.75mm HRC at CNY 4200 per tonne up by CNY 100 per tonne
Benxi Steel made 4.75mm Q235B HRC at CNY 3900 per tonne up by CNY 70 per tonne.
In the same days, Shanghai market also raised HRC prices by CNY 10 per tonne to CNY 30 per tonne over that of last trading day. 2.75*1250mm*C Q235/SS400 HRC was quoted at CNY 4020 per tonne, 3.0*1500*C Q235/SS400 at CNY 4000 per tonne, 4.5mm to 5.75*1500mm*C Q235/SS400 at CNY 3930 per tonne, 6.5mm to 11.5*1500mm*C Q235/SS400 at CNY 3920 per tonne.
According to traders’ feedback, mills’ export of HRC became better lately, and the export price of HRC continued the rise. The FOB export price for HRC from Ukraine, Russia and Korea went up to USD 600 per tonne, export price from China advanced from USD 540 per tonne to USD 565 per tonne.
In March many mills will see their record high in HRC export since 2009. According to the undercount, China mills’ planned export of HRC will touch 750,000 tons in March gaining 280,000 tonnes from February. The high inventory will be eased and HRC price will be fueled for the rise.