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Asian HRC prices have remained generally firm since the beginning of September, supported by higher raw material costs, firmer domestic steel prices and expectations of improving demand, although buying sentiment remains cautious in several markets.
In China, HRC export prices are currently heard at around USD 495-505 per ton FOB, compared with USD 500-515 per ton reported in the previous article. Prices remain supported by higher production costs and expectations of improved domestic demand, while overseas buyers remain cautious about accepting higher offers. Export demand has yet to show a significant improvement, keeping market activity relatively measured.
Indian HRC export offers are currently heard at around USD 570-590 per ton FOB, compared with USD 520-530 per ton reported previously. Domestic HRC prices have also increased, with flat steel producers offering material at around USD 647-662 per ton ex-Mumbai, up by around USD 31-42 per ton from late August. Expectations of stronger domestic demand are providing further support to prices.
In Northeast Asia, Japan’s Tokyo Steel has raised its flat steel prices by the equivalent of around USD 19 per ton for October sales, bringing HRC prices to around USD 664 per ton. Taiwan’s China Steel Corp. (CSC) has also increased its HRC prices by the equivalent of around USD 19 per ton for October sales.
In Vietnam, domestic HRC prices have moved higher, with Formosa Ha Tinh offering SAE1006 and SS400 HRC at around USD 540-550 per ton CIF Vietnam for October-November delivery, compared with around USD 525 per ton previously for large orders. Hoa Phat’s October price has increased to around USD 545 per ton CIF Vietnam from around USD 536 per ton previously. ASEAN-origin HRC is currently assessed at around USD 530-535 per ton CFR Vietnam, while Chinese Q195 offers are heard at around USD 500-510 per ton CFR. Market insiders said buyers remain cautious and many are inclined to purchase locally.
Indonesian HRC prices are currently heard at around USD 525-530 per ton FOB, compared with USD 520-530 per ton previously.
