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Chinese Mills Offer $15-20 Markup on HRC for April Shipments
According to a source, a multiple number of Chinese integrated steel mills have started negotiations on hot-rolled steel coil (HRC) for April shipments, offering a month-on-month (m/m) markup of $15-20. The offered price is also said to be about $530 on the FOB basis. The Chinese steel market has seen the HRC price go up by about $10 (in dollars) since the end of the Chinese New Year holiday period, and each mill seems to have included the fact in its offer price.

However, customers who carry high stocks have shown no responses to the offers and taken a wait-and-see attitude. The next demand season will soon begin; but they seemingly intend to watch how the US-China trade talks will unfold ahead of the 1st of March deadline. Even those who carry low stocks seem to be waiting for Vietnam's Formosa Ha Tinh Steel Corporation (FHS) to disclose its domestic price for April shipments (which is expected to happen early next week) before entering into any talks.

FHS raised its price by $15 for March shipments. The raised price has already been accepted nation-wide, and thus Chinese mills also reportedly entered into contracts with a $15 markup with Vietnamese customers.

FHS is almost certainly to raise its HRC price for April shipments, following suit with Chinese mills that offered a markup. Japanese mills, among others, are now highly interested in the extent of its markup. Japanese mills themselves are expected to begin their HRC talks for April shipments to Asia in the final week of February. A markup is for certain, but they have yet to decide whether the markup should be $30 or higher, reportedly.
last modified : Thu 21 Feb, 2019 [12:55]
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