Monthly HRC Market Report Oct 2017
2017-11-01 18:02:01 【Print】
The following is a brief synopsis of the report. Your access is restricted as it is a subscription based service.
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1. Market Highlights
Prices for HRC soared by around RMB200/t (USD30/t) in major Chinese domestics markets right after the 8-day National Day and Mid-Autumn holiday boosted by prices increases of raw materials as well as those in the steel futures market, but they went down quickly in the following two or three days and kept going up and down in the third and fourth week of the month. Meanwhile, major producers such as Baosteel, WISCO, Ansteel, Bengang Steel and HBIS all maintained HRC list prices for November flat, rather than lifted them as they did in past three months, indicating producers were not so confident of the market outlook. In the meantime, as end users were cautious about placing orders seeing insufficient orders as well as unclear price trend of HRC, the market performed as inactively as it did in September, and traders were inactive in supplementing inventories, with wait-and-see attitudes. Though northern mills are required to cut blast furnace production by 25%-75% from Mid-November, the output for HRC is unlikely to be cut obviously within November since mills may purchase steel scrap to make up the shortage of iron melt, while the downstream is hard to get strong with the weather getting cold day by day. Therefore, insiders do not think the HRC price could go up significantly in November.
Prices for HRC soared by around RMB200/t (USD30/t) in major Chinese domestics markets right after the 8-day National Day and Mid-Autumn holiday boosted by prices increases of raw materials as well as those in the steel futures market, but they went down quickly in the following two or three days and kept going up and down in the third and fourth week of the month. Meanwhile, major producers such as Baosteel, WISCO, Ansteel, Bengang Steel and HBIS all maintained HRC list prices for November flat, rather than lifted them as they did in past three months, indicating producers were not so confident of the market outlook. In the meantime, as end users were cautious about placing orders seeing insufficient orders as well as unclear price trend of HRC, the market performed as inactively as it did in September, and traders were inactive in supplementing inventories, with wait-and-see attitudes. Though northern mills are required to cut blast furnace production by 25%-75% from Mid-November, the output for HRC is unlikely to be cut obviously within November since mills may purchase steel scrap to make up the shortage of iron melt, while the downstream is hard to get strong with the weather getting cold day by day. Therefore, insiders do not think the HRC price could go up significantly in November.
