Weekly: Global HRC & CRC Market Overview

Chinese HRC export offers witness hike on strong futures

–Chinese HRC export offers increased by USD 20/MT on a weak basis following gains in the domestic market. Also, an upward trend in futures fueled optimistic sentiments in exports and overseas markets.

–Thus, the current assessed HRC export offer stands at USD 425-430/MT FoB China, which was USD 405-410/MT FoB basis a week ago.

–Meanwhile, market participants anticipated short supply with mills in the Northern Province due to production cuts scheduled from 18th May until 31 May’20 to improve air quality ahead of the week-long annual meeting of National People’s Congress and Chinese People’s Political Consultative Conference scheduled from 22 May’20.

–Also, the domestic HRC prices surged by RMB 100/MT on a day-on-day basis to RMB 3,520-3,550/MT (Eastern China) with robust domestic demand.

Imported HRC offers to Vietnam moved up –

Major exporting nations have raised their HRC export this week following uptrend in export offers from china. This, in turn, leads to recovery in imported HRC offers to Vietnam.

— HRC (SAE 1006, 2mm), China- Benxi Steel is offered at USD 430/MT CFR basis.

— HRC (SAE 1006, 2mm), Japan- Nippon Steel’s offer is at USD 435/MT CFR basis.

— HRC (SAE 1006, 2mm), South Korea- Hyundai Steel is offering at USD 430/MT CFR basis.

— HRC (Big coils), Russia- MMK is offered at USD 410/MT CFR basis.

Indian steel mills raise HRC export offers on strong Chinese futures-

–Major mills have sharply increased their HRC export offers by around USD 20/MT amid strong Chinese futures. Also, improved demand for imports in China and Vietnam pushed mills to raise offers.

— Current HRC export offers stood at USD 425-430/MT CFR Vietnam basis for July August deliveries. Last week’s offers were at 405-410/MT CFR basis. However, no major deals have been reported yet.

UAE imported HRC prices strengthen with recent bookings from India-

–Last week major Indian steelmaker has booked a small parcel of HRC to UAE at USD 415-420/MT CFR basis up by USD 20/MT from the prior offer of USD 395-400/MT a few days back, SteelMint learned from its sources based in the Middle East.

–Further, they shared that the market will remain bearish owing to lacklustre demand amid Ramadan holidays scheduled next week.

CIS origin HRC offers fall marginally-

–Nation’s HRC export offers have witnessed a marginal decline by USD 5/MT on the back of weak demand impacted by the concerns over COVID-19 pandemic.

–Thus, the current export offer stands at USD 350-360/MT FoB Black Sea as compared with USD 350-365/MT FoB basis a week ago.

Source: SteelMint Research