Domestic trade in China:
The average price of domestic hot-rolled coil market fell slightly this week. The average price of 3.0mm hot-rolled coils in 24 major markets across the country was 4,966 yuan/ton, down 3 yuan/ton from last week; the average price of 4.75mm hot-rolled coils was 4,897 yuan/ton, 2 yuan from last week and next week /Ton. The market fundamentals will continue to show a weakening trend next week, and the market trend of accumulating stocks is reflected. There is still a gap of about 10% in the current orders of steel mills, so in order to ensure the normal operation of cash flow, the situation of low-priced orders will continue to be maintained, which will put pressure on the market price in disguise; The whole logic is difficult to change without actual execution.
Exports from China:
This week, the export price of my country’s hot-rolled coil continued to drop significantly, mainly due to the sharp decline in demand in the domestic market and overseas markets. The current export transaction price of hot-rolled coil is about 710-720 US dollars / ton, which is higher than last week. Down 20-25 US dollars / ton. Although the price has fallen, it is still difficult to widen the price difference at home and abroad, and the overall order reception in the market is poor. With the continued weak demand at home and abroad, the pressure of price increases is huge, and it is expected that my country’s HRC exports will remain sluggish in the future.
Southeast Asia:
Hot-rolled coil prices in Southeast Asia continued to fall this week as buyers stayed on the sidelines due to sluggish market demand. According to Mysteel’s assessment, the current import transaction price of SS400 hot-rolled coil is US$710-715/ton, down by US$35/ton on a week-on-week basis.
Formosa Ha Tinh announced its latest offer this week, cutting the price of SAE1006 hot-rolled coil for August shipment by $100/t to $755-765/t CIF Ho Chi Minh. But buyers are taking a wait-and-see attitude toward the price, and the company has room to cut its offer further, according to sources. Affected by this, local steel mills have followed suit, and the quotations of hot-rolled coils of the same specification are at US$735-745/ton CFR Ho Chi Minh.
India:
This week, India is in the monsoon season, the market transportation costs are rising, and the demand continues to be weak. The market participants are generally bearish and the purchasing interest is not good. The current spot price delivered to Mumbai is US$780/ton, down by US$30/ton on a week-on-week basis. With limited demand at home and abroad, steel mills may choose to overhaul or reduce production to reduce inventory pressure.
Separately, Mysteel was informed that this week India exported 20,000 tonnes of SAE1006 grade HRC to Vietnam at a transaction price of $738/t cfr Vietnam.
Europe:
European hot-rolled coil prices fell further this week as bearish sentiment among buyers squeezed buying activity to a minimum due to sluggish downstream demand. At present, the mainstream HRC price in the EU is US$950/ton, a month-on-month decrease of US$260/ton, and the mainstream import price is US$905/ton, a month-on-month decrease of US$85/ton. The steel mill plans to complete contract negotiations with the automaker for the third quarter and the second half of 2022 by the end of June.
U.S:
This week, the US market sentiment is pessimistic. Buyers are busy dealing with inventories. The price of hot-rolled coils has dropped significantly. At present, the ex-factory price of the US Midwest is US$1,190/ton, a month-on-month decrease of US$345/ton, and the import price is US$1,140/ton. Month-on-month down $220/ton.
Post time: Jun-20-2022