Weekly: Global HRC & CRC Market Overview

China’s HRC export offers remain range-bound- Chinese HRC export offers remained largely stable over thin trades and bearish sentiments hovering in the export market amid lockdown announced across the globe to combat the virus.

–The current week price is assessed at USD 400-403/MT FoB China basis, which was USD 400-405/MT FoB basis a week ago.

–Nation is actively importing HRC from Korean and Indian mills. Last week an Indian steelmaker booked around 30,000-40,000 MT of HRC to China at USD 390-393/MT CFR basis.

–Thus, the domestic steel prices continued to remain under pressure. Meanwhile, the domestic HRC price stood around RMB 3,280-3,300/MT down by RMB 20/MT in Eastern China and RMB 3,230/MT Northern China down by RMB 10/MT D-o-D basis.

Imported HRC Offers to UAE remained stable amid limited inquiries-

— Indian steel mills have booked deals to the UAE at around USD 400/MT CFR basis in the last two weeks.

— However, currently, South Korean mills are actively offering HRC to UAE but no major deals have been concluded yet.

— Sources further shared with SteelMint that the importers in UAE are holding enough inventories in hand. Meanwhile, the commencement of Ramadan month from 23rd April’20 has reduced buying appetite in Middle East nations.

Imported HRC to Vietnamese market remains active; deals concluded-

— A private Indian steel manufacturer was heard to have booked around 20,000- 30,000 MT of HRC last week to Vietnam at around USD 390-393/MT CFR basis for June deliveries.

–Meanwhile, Formosa deferred its price announcement for May-June delivery in the purview of disruptions caused by the lockdown on containment of COVID-19 pandemic in the country. Few market sources shared that the company is negotiating separately with customers and offering HRC (skin pass) at USD 420/MT CIF basis, and HRC (non-skin pass) at USD 415/MT CIF basis.

Current imported HRC offers to Vietnam

— HRC (SAE 1006, 2mm), China- Benxi Steel’s offer at USD 408-410/MT CFR basis.

— HRC (SAE 1006, 2mm), China- Chunghung Steel is offering at USD 400-405/MT CFR basis.

— HRC (SAE 1006, 2mm), South Korea- Hyundai Steel’s offer continues to hover at USD 415/MT CFR basis.

— HRC (SAE 1006, 2mm), Japan- Nippon Steel offers stood around at USD 415/MT CFR basis.

— HRC (SAE 1006, 2mm), Russia- MMK is offered at USD 390/MT CFR basis.

CIS origin HRC export offer falls on a weekly premise-

–Nation’s HRC export offer is assessed at USD 355-370/MT FoB Black Sea, down by USD 5-10/MT in comparison with USD 360-375/MT FoB basis in the past week since buyers continued to bid on the lower side.

Imported HRC offers to Pakistan fell further on bearish sentiments-

–The imported HRC offers to Pakistan declined by USD 20/MT from Japan on the back of bearish market sentiments in Pakistan with the buyers attaining a wait and see approach amid the lockdown in effect until the end of the month.

–Meanwhile, offers from the Japanese exporters were heard at USD 410/MT CFR basis in contrast with USD 430/MT a couple of weeks back. However, no major deals have been concluded yet.

–Further, offers from South Korea and China were also heard in a similar range.

–Sources also shared that the Chinese suppliers are struggling to get clean Letter of Credits against previous orders which were booked at higher prices.

Source: SteelMint Research