Transparency, timeliness make case for China HRC export price index

Volatile prices for hot rolled coil coupled with a near-unstoppable upward trend in China in recent months have made it very challenging for Chinese exporters of the flat steel product and market participants outside the country to make their pricing decisions.

Export prices for Chinese steel products have fluctuated more greatly over the past two years. After the strong rebound in late April this year, prices for HRC – the most liquid steel product in China’s export market – have risen back to early-2013 levels of $600 per tonne fob – a development that caught many market participants by surprise.
This is an increase of over 40% since mid-April, when prices fell as low as $415 per tonne fob, according to Metal Bulletin’s price archive.

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Amid China’s fast-moving market, both Chinese HRC exporters and market participants outside the country are calling for more frequent published price benchmarks to reflect the fluctuations in a timelier manner.
Against this background, Metal Bulletin is consulting with market participants about the feasibility of upgrading the weekly assessment of export prices for Chinese HRC to a daily index.

“The market price...


Gladdy Chu

September 21, 2017

14:45 GMT