Global Flat Steel Market Overview – Week 47,2018

Chinese HRC export offers move down sharply on weekly basis – Chinese HRC export offers drop further  owing to bearish market sentiments and pessimistic outlook in domestic market.Meanwhile weak futures also supported decline in prices.

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 500/MT FoB basis. However last week offers was assessed around USD 515-520/MT FoB basis.

Meanwhile prices of HRC in the domestic market fell further amid decline in futures market. Presently domestic HRC is assessed at RMB 3,790-3,820/MT (ex-works) in Eastern China, down by RMB 10/MT on D-o-D basis.

Thus Chinese HRC prices are anticipated to decrease further as the Chinese government has eased production limits in winter season.

CIS origin HRC export offers decline further over subdued demand- CIS-origin HRC export offers move down further this week by USD 10-15/MT amid slowdown in buying activity.Thus oversupply leads to further downfall in prices.

Currently CIS origin HRC export offers heard around USD 480-490/MT, FoB Black Sea.Last week the offers stood at USD 490-495/MT FoB Black Sea.

Imported HRC offers to Vietnam dip further-This week Imported HRC offers to Vietnam remain stable after witnessing decline by the end of last week amid falling Chinese steel prices

Meanwhile Vietnam’s domestic mill – Formosa Ha Tinh has cut HRC offers by USD 30-40/MT across various grades and for wire rod by USD 15/MT for Jan’19 against last month offers.Currently Formosa’s HRC SAE 1006 offers with skin pass is assessed at USD 530-535/MT CIF Ho Chi Minh City.

Current HRC trade offers to Vietnam – Week 47, 2018
1.HRC (SAE 1006) 2-3mm / Chinese offer – Benxi Steel is at USD 525/MT CFR Vietnam

2.HRC (SAE 1006) 2-3mm / Chinese offer – Xinyu Steel is at USD 510/MT CFR Vietnam

3.HRC (SAE 1006) 2-3mm / Chinese offer – Laiwu Steel is at USD 510/MT CFR Vietnam

4.HRC (SAE 1006) 2-3mm / Russian offer – MMK Steel is at USD 505/MT CFR Vietnam for small coils.

Indian HRC export offers decline in recent deal concluded- Recently market sources shared that a major Indian mill decline their HRC export offers for Vietnam.

A major Indian steel maker booked around 20,000 MT of HRC to Vietnam in the range of USD 520-525/MT CFR basis for Dec shipments.

Prior this,an Indian mill have concluded HRC export deal for 20,000 MT HRC at around USD 540/MT, CFR to one of Vietnam’s leading producer of Galvanized and pre-painted steel sheet.

Global Flat Steel Export Offers – Week 47, 2018

Source -SteelMint Research