Imported HRC Offers to Vietnam Fall From Japan in Recent Deal

The imported HRC offers to Vietnam tumbled by USD 20/MT from the Japanese mills in a recent deal concluded yesterday, SteelMint learned from its authentic sources based in Vietnam.

–A Japanese based major steel mill booked HRC (SAE1006) of 20,000-30,000 MT for exports to Vietnam at USD 470/MT CFR Vietnam to buyers namely NamKim steel, POSCO Vietnam and Hoasen for Mar-end-Apr’20 delivery. Last week the offer was prevailing at USD 490/MT CFR basis.

–Following this South Korean major steelmaker also reduced HRC export offers to Vietnam and offering at USD 473-475/MT CFR basis. However last week the offer was at USD 485/MT CFR basis.

Current HRC offers to Vietnam

— HRC (SAE 1006, 2mm), China- Benxi is offering at USD 470/MT CFR basis.

— HRC (SAE 1006, 2mm), China- Baosteel is offering at USD 470/MT CFR basis

— HRC (SS400), China- Chinese steel mills offering at USD 460/MT CFR basis.

— Vietnamese domestic integrated steel manufacturer Formosa Ha Tinh is offering HRC (skin pass, SAE1006) prices at USD 520/MT for Apr’20 deliveries.

Chinese HRC export offers move up on rebound in domestic prices-

— HRC export offers moved up by USD 5/MT on a weekly premise since the nation’s steelmakers are largely focusing on export trades owing to scarce demand in the domestic market.

–The current HRC export offer stands at USD 470-490/MT FoB China this week which was USD 475-485/MT FoB basis in the previous week.

— Meanwhile, rebound in domestic prices failed to boost the market sentiments amid higher inventories. Currently, domestic HRC price is hovering at RMB 3,520-3,540/MT (Eastern China) up by RMB 30-40/MT D-o-D basis. Also, prices in the Northern region are settled at RMB 3,280-3,300/MT (Northern China).

Indian HRC export offers stable  on limited trades-

–Steel mills have kept  HRC export offers to Vietnam stable owing to lower HRC export offers from China.

— Current HRC export offers assessed at USD 490/MT CFR basis.

— However, steel manufacturers are largely focusing on the domestic market over less competitive export offers compared to China. Also, yesterday, Indian steel mills raised HRC prices by INR 500-700/MT for Mar’20 deliveries.

Imported HRC offers to UAE fell from India

— Imported HRC offers to UAE declined from India by USD 5-10/MT and offering at USD 500/MT CFR UAE for Mar-Apr’20 deliveries. No major deals reported yet. Previous week the offer was at USD 505-510/MT CFR basis.

— A major Chinese steelmaker is offering HRC thinner gauge at (1.2mm) at USD 540/MT CFR basis.

— Japanese and Korean mills are offering HRC aggressively at USD 480/MT CFR basis.

CIS origin HRC export offer remains stable-

— The CIS origin HRC export offers remained consistent on a weekly premise and stood at USD 465-475/MT FoB Black Sea.

— The bearish market sentiments in the key importing nations continue to keep HRC export offers stable.

Source: SteelMint Research