Indian Steel Mills Eye for Lower HRC Offers from Japan

Market sources in conversation with SteelMint shared that,Indian mills are eyeing for lower HRC offers from Japan.Japanese mills have not offered any material for August shipments to India and have kept HRC export offers stable for September shipments. Currently Japanese mills are offering HRC at around USD 650-660/MT CFR basis.

However Indian buyers are bidding around USD 600-620/MT CFR India amid weaker prices in domestic market. Thus there is a gap of around USD 30-50 between bids and offers.

A market participant commented that,”Indian mills have refrained themselves from booking HRC amid arrival of monsoons and lackluster demand in domestic market. However demand may pick up from the month of October.Meanwhile USA tariffs will result to limited HRC exports from Japan in near term”.

Chinese HRC export offers continued to remain steady-Chinese HRC export offers continued to remain stable despite retreat in domestic prices.However depreciation of Yuan against USD has also kept HRC export offers largely stable.

Currently Chinese HRC export offers heard around USD 575-580/MT, FoB China. Payment are made on letter of credit basis for 1,000-10,000 MT

Domestic prices have increased by RMB 50/MT on weekly basis.Thus prices of HRC in the domestic market are gauged at RMB 4,290-4,310/MT (ex-works) in Eastern China and 4,220-4,240 /MT Northern China.

CIS HRC export offers remain unchanged-CIS origin HRC export offers remain unaltered as buyers have postpone their purchases.They have adopted wait and watch mode and are observing trend of Chinese steel prices.

Currently HRC (2.5 mm S235 JR) export offers are heard around USD 560-565/MT FoB Black Sea.However last week the prices stood in the similar range.

Major mills in Russia are offering HRC in range of USD 560/MT FoB Black Sea.

Indian mills reduce HRC export offers to Vietnam – Last week a major Indian steel mill based in eastern region has concluded a deal of 10,000 MT of HRC cargo to Vietnam in the range of USD 592/MT CFR basis.Previously the offers were assessed around USD 600-605/MT CFR basis.

However imported offers to Vietnam from China remain stable at USD 600-610/MT CFR Vietnam.

Global Flat Steel Export Offers – Week 31,2018

Source-SteelMint Research