Now, he is clearing his stock at prices that are “higher than expected.”
“This is thanks to rising domestic demand, which saved scores of importers from losing money,” he said.
In the first seven months of 2020, China imported over 3.3 million tonnes of HRC, most of which consisted of rerolling grades, according to Chinese customs data.
That is a 128% increase from 1.45 million tonnes a year earlier.
The higher supply led to rerolling-grade HRC prices falling 10-30 yuan per tonne below those for mainstream grades in mid-August.
On August 14, rerolling-grade HRC in Shanghai was priced at 4,030 yuan per tonne, while mainstream grades were trading at 4,040-4,060 yuan per tonne
Under typical circumstances, rerolling grades fetch around 20 yuan per tonne more than mainstream grades due to their higher production costs.
“As such, it is understandable for trader to import...