Chinese HRC prices rise on improved trading

China’s hot-rolled coil steel prices increased on Tuesday March 28, with domestic trading improving from the previous week, traders told Fastmarkets


Fastmarkets’ price assessment for steel hot-rolled coil domestic, ex-whs Eastern China (Shanghai) was 4,300 yuan ($625) per tonne on Tuesday, up by 20 yuan per tonne from 4,280 yuan per tonne March 27.

The value of the most-traded May HRC futures contract on the Shanghai Futures Exchange rose after falling to an intraday low of 4,209 yuan per tonne during Monday’s night trading.

A trader in eastern China attributed rallies in SHFE HRC and rebar to the extended gains in prices for iron ore.

The value of the most-traded iron ore futures contract on the Dalian Commodity Exchange rose for a third straight trading day on Tuesday and hit a one-week high of 884 yuan per tonne.

Spot HRC trading in eastern China improved from the previous week when industry data indicated a weekly decline in HRC apparent demand. Whether steel demand remains resilient will prove crucial to the market, a trader in northern China added.


Fastmarkets assessed its steel hot-rolled coil index export, fob main port China at $629 per tonne on Tuesday, up by $0.67 per tonne from $628.33 per tonne on Monday.

Chinese mills and trading houses kept their offers for HRC exports virtually unchanged on Tuesday compared with the previous day.

Mills were offering May- and June-shipment SS400-grade HRC at $660-680 per tonne FOB China.

Market participants’ estimates of the costs for sourcing SS400-grade HRC from small mills in northern China held stable at $625-630 per tonne FOB.

In Vietnam, the major market for Chinese HRC exports, offers for China-origin SS400- and Q195-grade HRC were $625-628 per tonne CFR.

Trading for HRC exports has yet shown signs of improvement, with buyers tending to wait and see “for a while” after prices stemmed their decline, a second trader in eastern China said.

Market chatter

“This year’s demand recovery looks unlikely to be consistent. It will weaken for a while following a bout of active trading. If the demand recovery remains stable, the downside in [Chinese] steel prices may be limited. Otherwise, prices would collapse. On the supply side, hot metal output remains high with positive margins encouraging mills to maintain production,” the northern China-based trader said.

Shanghai Futures Exchange

The most-traded May HRC futures contract closed at 4,255 yuan per tonne on Tuesday, up by 30 yuan per tonne from Monday’s close.

What to read next
Fastmarkets has decided to proceed with the launch of a new European low carbon ferro-chrome price covering material with lower chrome content.
Fastmarkets invites feedback on a proposal to increase the publication frequency of non-exchange-deliverable equivalent-grade (EQ) copper cathode premium, cif Shanghai, from once every two weeks to once every week.
The outlook for North American steel scrap prices has headed further into bearish territory ahead of June’s trade, with prices for all grades expected to fall again after a round of across-the-board decreases in May
Fastmarkets is inviting feedback on a change of publishing time for our ferro-chrome price in the Chinese domestic market as well as ferro-chrome import prices in Japan and South Korea, to 5-6pm Shanghai time from 2-3pm London time.
Fastmarkets is inviting feedback on a proposal change the publishing time for our silico-manganese, ferro-manganese and manganese ore port prices in China, to 5-6pm Shanghai time from 2-3pm London time.
The publication of Fastmarkets copper concentrates TC index, cif Asia Pacific was delayed on Friday March 26, due to a reporter error.
We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.