China Domestic Market
In Guangzhou, hot-rolled coil prices showed a weakening trend this week. The price of 4.75mm standard coils from leading steel mills is around 3,680 yuan per ton, while low alloy coils are priced between 3,780 and 3,800 yuan per ton. The average price of hot-rolled coils in Guangzhou fell by about 50 yuan per ton compared to last week. Market sentiment was low, and transactions slightly decreased from the previous week.
China Export Market
Hot-rolled coil prices from Chinese steel mills and traders generally dropped this week. A northeastern steel mill lowered its SS400 HRC listing price from $530 per ton FOB last week to $525 per ton FOB. Similarly, a northwestern steel mill reduced its listing price from $540 per ton FOB to $530 per ton FOB. Despite reduced circulation of advantageous resources due to macroeconomic factors, sales remained sluggish, according to multiple steel mill sources cited by Mysteel. Influenced by the futures market, traders’ offers also fell this week. The price of 3.0mm Tangshan Q195 HRC decreased from $520 per ton CFR last week to $515 per ton CFR, with an additional charge of $2 per ton for 2.75mm and $7 per ton for 2.5mm, for September shipment.
Southeast Asia
According to a Vietnamese supplier, at least two Chinese shipments of SAE1006 HRC are expected to arrive in September, priced at $535 per ton CFR. Vietnam’s exports of galvanized coils to Europe have almost ceased, and demand remains low despite tariff incentives. A Japanese steel mill quoted $560-$570 per ton CFR Vietnam. For domestic HRC, Formosa Ha Tinh and JFE Steel’s August-September HRC prices remained unchanged from June 14, equivalent to local prices of $572-$560 per ton, depending on the order quantity (ranging from 2,000 to 20,000 tons). The company’s September export offer for Southeast Asia is around $555 per ton FOB, and for other markets, around $542 per ton.
India
India’s domestic HRC prices fell by 500-1,000 rupees per ton ($6-$12), currently ranging from 52,000 to 53,000 rupees per ton ($635-$641 per ton), down from 53,000-53,500 rupees per ton on June 28. The pressure on domestic HRC prices is due to cheaper imports, with over 100,000 tons of imported HRC expected to arrive at Indian ports in July, further intensifying the price pressure.
Conclusion
The varying trends in hot-rolled coil prices across different regions reflect the complex interplay of local market dynamics, import pressures, and global economic factors. The upcoming months will be critical in determining how these factors influence pricing and market stability.
Information for this report was gathered from industry sources, market data, and interviews with key stakeholders in the steel industry.