Global HRC & CRC Market Overview- Week 3, 2020

China HRC export offers continue to increase on weakening USD- Chinese HRC export offers continue to increase on appreciating RMB against USD. Also, active trade inquiries from overseas buyers persuaded steelmakers to raise offers. Also, buyers in urgent need of material are willing to procure material at higher prices.

The current HRC export offers from Chinese mills are hovering around USD 500-505/MT, FoB China which was USD 495-500/MT FoB basis in the preceding week.

Meanwhile, domestic HRC prices fell by RMB 10/MT on a day-on-day premise to RMB 3,880-3,890/MT (Eastern China) with a decline in trading activities amid gradual winding up of activities by buyers ahead of the Chinese New Year holidays starting from 24th Jan’20.

Indian HRC export offers continue to remain on the higher side- Indian steel mills are offering HRC export at around USD 535-538/MT CFR Vietnam for March shipments.

Also, SteelMint learned from market sources that major Indian steel mills were heard to have booked around 10,000 MT HRC at around USD 534-535/MT CFR basis to Vietnam for Feb-end-March shipments.

Also few parcels of HRC of around 12,000 MT have also been booked to UAE at USD 527-528/MT CFR basis for March shipments. However it couldn’t confirmed while publishing this report.

Imported HRC offers to Vietnam remain firm ahead of Tet Holidays- The imported HRC offers to Vietnam from major exporting nations remained firm after the announcement of the price hike by domestic integrated steel maker Formosa Ha Tinh for March’20 deliveries.

Further, the domestic short supply amid Formosa’s planned maintenance shutdown until 17th Jan’20 and restocking ahead of the Tet New Year holidays starting 25th Jan’20 shall keep the offers supported.

Current HRC export offers to Vietnam- Week 3, 2020

1. HRC (SAE 1006) 2mm, Japan- Nippon Steel offering at USD 525-530/MT CFR basis.

2. HRC (SAE 1006) 2mm, South Korea- Hyundai Steel’s offers stand at USD 520-530/MT CFR basis.

3. HRC (SAE 1006) 2mm, China- Rizhao Steel’s offer continues to hover at USD 517- 520/MT CFR basis.

4. HRC (SAE 1006) 2mm, China- Benxi is offering at USD 520-525/MT CFR basis.

5. HRC (SAE 1006) 2mm, China- Laiwu is offering at USD 520/MT CFR basis.

6. HRC (SAE 1006) 2mm, Taiwan- Chung Hung Steel offering at USD 525- 530/MT CFR basis.

7. Vietnamese integrated steelmaker Formosa is offering at USD 520/MT CIF Ho Chi Minh for Mar’20 shipments.

CIS-origin HRC export offer rises W-o-W- This week, the CIS origin HRC export offers ascended by USD 15-20/MT following an increase in global prices.

Thus, after the increase, the HRC export offer stands at USD 475-490/MT FoB Black Sea in comparison with USD 460-470/MT FoB basis a week ago.

Source: SteelMint Research