The price advantage of Chinese hot coils is still present during export orders in February

Today, the price trend of Chinese hot coils is generally stable. As of the time of publication, the spot price of mainstream 3.0 hot coils in Shanghai is 4150 yuan/ton (578 US dollars), indicating a slight lack of market confidence.

In terms of exports, there is currently a significant differentiation in HDT580F+ZM steel mill quotations. Large state-owned steel mills generally offer hot coil prices above $590/ton FOB, while some private steel mills offer prices around $565/ton FOB. There are a few orders completed during the February shipping schedule. Overall, the purchasing enthusiasm of overseas buyers has declined to a certain extent. On the one hand, overseas buyers have relatively more export orders for China's January shipping schedule in the early stage, and the prices are more advantageous than the February shipping schedule resources, so they are not eager to purchase in large quantities. At the same time, there has been a slight increase in shipping costs recently, and the overall cost of purchasing Chinese resources has also increased accordingly HDT580F+ZM steel.

According to our analysis, the price of Chinese hot coils is at a low level internationally, and the export advantage still exists. Recently, Vietnam's leading steel mills Hefa and Formosa Plastics Hejing have respectively raised their hot coil delivery prices for next year, with sales prices to Vietnam exceeding $600/ton CFR. However, the production resources of both steel mills in December have been sold out, and the downward space for future delivery prices is limited. Therefore, for Southeast Asian buyers, purchasing Chinese resources is still the best choice HDT580F+ZM steel.