Global Flat Steel Market Update – Week 46, 2018

Chinese HRC export offer drop further over sparse trading- Chinese HRC export offers is persistently showing downward momentum over sparse trading in domestic and export market.Demand supply mismatch is leading to sharp decline in Chinese steel prices.Meanwhile overseas buyers are also bidding on lower side.

This week HRC export offers from China decline by 10-15/MT W-o-W basis.Currently HRC export offers from China is assessed around USD 515-520/MT FoB basis. However last week offers was assessed around USD 530-535/MT FoB basis.

However prices of HRC in the domestic market witness significant drop amid decline in futures market. Presently domestic HRC is assessed at RMB 3,800-3,820/MT (ex-works) in Eastern China, down by RMB 220/MT against previous week.

CIS origin HRC export offers decline further – CIS-origin HRC export offers move down further this week by USD 5-10/MT following slump in Chinese steel prices.

Currently CIS origin HRC export offers heard around USD 490-495/MT, FoB Black Sea.Last week the offers stood at USD 490-500/MT FoB Black Sea.

Imported HRC offers to Vietnam Dip Further-This week imported HRC decline further in line with lower HRC export offers from China.

Currently imported HRC (SAE 1006) is assessed around USD 530-540/MT CFR basis.However last week the offers was in the range of USD 540-550/MT CFR basis.

Meanwhile end users in Vietnam are bidding on lower side for imported HRC which is around USD 525/MT CFR basis.However no major deal concluded in these rates.Prior this, major Indian mill booked 20,000 MT of HRC with Vietnam based mill at USD 540/MT CFR basis last week.

Absence of Indian HRC trades to Nepal – As per market sources,no recent HRC deal was concluded from India to Nepal as mills are already sufficiently stocked with the material. Trades are expected to pick up from next week onwards.

Global Flat Steel Export Offers – Week 46, 2018

Source-SteelMint Research