Global HRC & CRC Market Overview- Week 50, 2019

Chinese HRC export offers move up further following gains in the domestic market- China’s HRC export offers witnessed an uptick this week, over increased domestic demand. Also, restocking activities by traders propelled the mills to increase prices both in the domestic and export markets.

Thus, current HRC export offers stand at USD 470-475/MT FoB China, which was USD 465-470/MT FoB basis a week ago.

Meanwhile, prices ascended by RMB 50/MT on a D-o-D basis to RMB 3,810-3,820/MT in Shangai, and rose by RMB 40/MT D-o-D basis to RMB 3,670/MT in the Tangshan region.

The nation-wide supply shortage owing to the logistics restraint along with announced blast furnace production restrictions till 10 Dec’19, keeps the domestic HRC prices bolstered.

Indian steel mills raise HRC export offers to Vietnam- Indian steel mills raised higher HRC export offers by USD 5-10/MT at USD 475-480/MT CFR Vietnam as against USD 470/MT CFR basis a week ago.

Improved sentiments in the domestic market amid strengthening prices drive HRC export offers on the higher side.

Buyers in Vietnam have adopted a wait and watch approach amid increased offers. However, earlier they have booked the material and are not in a hurry to make fresh purchases.

Imported HRC offers to Vietnam remain stable- Imported HRC offers to Vietnam remain unchanged over the preceding week from most of the exporting nations.

Also, Vietnam-based integrated steel mill Formosa Ha Tinh is planning to revise its HRC prices by the end of this week. Thus, Vietnamese buyers have attained a wait-and-watch approach and await Formosa Ha Tinh’s price announcement for Jan’- Feb20.

Current HRC export offers to Vietnam-

1. HRC (SAE 1006) 2mm, Japan- Nippon steel offering at USD 480-490/MT CFR basis.

2. HRC (SAE 1006) 2mm, South Korea- Hyundai Steel’s offers stand at USD 475/MT CFR basis.

3. HRC (SAE 1006) 2mm, China- Rizhao steel mill is offering at USD 475-480/MT CFR basis.

4. HRC (SAE 1006) 2mm, Russia- MMK steel offering at USD 465/MT CFR basis, unchanged over the preceding week.

5. Confirmed deal of 30,000-40,000 MT HRC booked from a private Indian steel manufacturer at USD 470/MT CFR basis, for Jan-Feb deliveries.

CIS origin HRC offers increase on weekly basis- CIS origin HRC export prices increased by around USD 20/MT on a weekly premise.

Thus, current HRC export offers stand at USD 425-435/MT FoB Black Sea in contrast with USD 405-415/MT FoB basis in the previous week.

Source: SteelMint Research