Indian Mill Books HRC for Export to Europe – Sources

SteelMint learned from market sources that a major Indian mill has recently booked HRC cargo for export to Europe. As per sources commercial grade HRC (2mm) has been booked at around USD 645/MT, CFR Europe.However quantity was unknown at the time of publishing this report.

Indian steel mills used to actively offer HRC for export to European nations but owing to safeguard investigations going on, Indian mills had shifted their interest to SE Asian nations and Middle East in last 3-4 months. But with announcement of imposition of import quotas on steel products, Indian mills have again started exploring European market.

European Commission has imposed tariff quotas on imports of 23 product categories for a period of 200 days from the entry into force of this regulation. These mean a 25% tariff will be levied on EU imports that exceed a global quota based on the average tonnage from 2015-2017.

However Indian HRC export offers to Vietnam were heard in the range of USD 595-605/MT, CFR Vietnam earlier this week.

Chinese HRC export offers inch down – Chinese HRC export offers inch down by USD 5-10/MT owing to fluctuation in domestic prices.Meanwhile sources shared that slowdown in industrial and consumption activities results to falling prices in domestic market.

Currently Chinese HRC export offers heard around USD 570-575/MT, FoB China.Payment are made on letter of credit basis for 1,000-10,000 MT.

Domestic prices decline by RMB 30-40/MT on weekly basis.Prices of HRC in the domestic market are gauged at RMB 4,280-4,300/MT (ex-works) in Eastern China and 4,230-4,250 /MT (Northern China).

CIS origin HRC export offers remain stable- CIS origin HRC export offers remain unchanged this week.Thus importers in Turkey are not able accept bids on higher side amid depreciation of currency Lira post imposition of double tariffs by USA president Donald Trump under Section 232.

Currently HRC (2.5 mm S235 JR) export offers are heard around USD 565-575/MT FoB Black Sea.However last week the prices stood in similar range.

However major mills are quoting HRC export offers on higher side which is around USD 575-580/MT FoB basis.

Imported HRC offers to Vietnam from China remain firm-Imported offers of HRC to Vietnam continue to remain steady owing to bearish market sentiments along with monsoons. Meanwhile end users are also preferring lower domestic offers over imported ones amid lackluster demand.

Currently imported offers of HRC ( SAE 1006) to Vietnam from China is assessed at USD 597-600/MT CFR basis. However Japanese and Korean mills have resumed offers this week.

However Vietnam’s domestic steel producer Formosa Ha Tinh Corporation likely to revise their monthly offers by the end of this week. Last offers for skin pass HRC were heard in the range of USD 610/MT CIF Ho Chi Minh City.

Global Flat Steel Export Offers – Week 33, 2018

Source-SteelMint Research