GCC HRC Market Reacts to Chinese Price Drop
[tintuc]
Hot rolled coil (HRC) suppliers outside of China have lowered their offer prices to the Gulf Cooperation Council (GCC) market in response to a significant decline in Chinese HRC prices. This price adjustment follows a sharp downturn in Chinese stock markets and a weakening of the Chinese currency against the US dollar. Consequently, Chinese steel futures for HRC have fallen by approximately $10 per tonne week-on-week.
In reaction to the Chinese price slump, non-Chinese suppliers have reduced their prices to the GCC by $15-25 per tonne compared to end-December offers.
Chinese tier-one mills are now offering base grade (Q195, A36) 3mm+ HRC at $500-505 per tonne CFR GCC (approximately $465-470 per tonne FOB China), with potential discounts of $5-10 per tonne for firm bids. Some traders are even offering Chinese tier-one material at $490 per tonne, suggesting possible short selling for March shipments.
Prices for other origins have also seen adjustments:
Indian major offering 2mm SAE 1006 grade HRC at $535 per tonne for late-February/early-March loading, down from $550-560 per tonne.Taiwanese major offering the same grade at $535 per tonne for early March, down from $555 per tonne.Chinese tier-one mills quoting $515-520 per tonne for 2mm SAE 1006 grade HRC for March shipments.Japanese mills offering similar prices at $520-525 per tonne for March shipments, down from $530 per tonne.Chinese tier-one mill offering 1.2mm SPHT-1 grade from its ESP line at around $555 per tonne for February shipments.All prices are CFR Dammam, Saudi Arabia, or Jebel Ali, United Arab Emirates, unless otherwise stated.
Buyers in the GCC are currently taking a cautious "wait and see" approach. However, increased inquiry activity is expected towards the end of the week and next week, potentially leading to increased trading volume as buyers look to secure March-shipment cargoes before the Chinese New Year holiday, which officially starts on January 29th. Many Chinese suppliers will be offline three to five days prior to the official start of the holiday.
Hot rolled coil (HRC) suppliers outside of China have lowered their offer prices to the Gulf Cooperation Council (GCC) market in response to a significant decline in Chinese HRC prices. This price adjustment follows a sharp downturn in Chinese stock markets and a weakening of the Chinese currency against the US dollar. Consequently, Chinese steel futures for HRC have fallen by approximately $10 per tonne week-on-week.
In reaction to the Chinese price slump, non-Chinese suppliers have reduced their prices to the GCC by $15-25 per tonne compared to end-December offers.
Chinese tier-one mills are now offering base grade (Q195, A36) 3mm+ HRC at $500-505 per tonne CFR GCC (approximately $465-470 per tonne FOB China), with potential discounts of $5-10 per tonne for firm bids. Some traders are even offering Chinese tier-one material at $490 per tonne, suggesting possible short selling for March shipments.
Prices for other origins have also seen adjustments:
Indian major offering 2mm SAE 1006 grade HRC at $535 per tonne for late-February/early-March loading, down from $550-560 per tonne.
Taiwanese major offering the same grade at $535 per tonne for early March, down from $555 per tonne.
Chinese tier-one mills quoting $515-520 per tonne for 2mm SAE 1006 grade HRC for March shipments.
Japanese mills offering similar prices at $520-525 per tonne for March shipments, down from $530 per tonne.
Chinese tier-one mill offering 1.2mm SPHT-1 grade from its ESP line at around $555 per tonne for February shipments.
All prices are CFR Dammam, Saudi Arabia, or Jebel Ali, United Arab Emirates, unless otherwise stated.
Buyers in the GCC are currently taking a cautious "wait and see" approach. However, increased inquiry activity is expected towards the end of the week and next week, potentially leading to increased trading volume as buyers look to secure March-shipment cargoes before the Chinese New Year holiday, which officially starts on January 29th. Many Chinese suppliers will be offline three to five days prior to the official start of the holiday.
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