Indian mills raised HRC export offers by around USD 10/MT towards the beginning of this week following uptrend in Chinese steel futures. The current HRC export offers to Vietnam now stands at USD 430-435/MT CFR Vietnam. In a recent update received a deal of 80,000 MT Indian origin HRC has been booked for Vietnam at around USD 430/MT, CFR. Further details of the deal could not be received until the time of publishing this report.
Last week few major mills concluded an export deal of HRC with significant volumes at around USD 420-425/MT CFR basis.
Chinese HRC export offers remain range-bound-
–This week the nation’s HRC export offers remained largely stable. The offers stand at USD 430-435/MT FoB China basis consistent over the previous week.
–On the other hand, rise in futures market boosted the market sentiments and in turn resulted in a surge in domestic prices. Also, the People’s Bank of China has infused RMB 300 billion into the market to revive the COVID stricken economy.
–On the other hand, domestic HRC prices stood at RMB 3,650-3,660/MT (Eastern China), up by RMB 60-70/MT as compared to yesterday.
Imported HRC offers to Vietnam rise further-
The offers from major exporting nations increased further by around USD 5-10/MT since importers started to bid on the higher side with the Chinese market gaining momentum on future gains.
Current imported HRC (SAE 1006, 2mm) Offers to Vietnam-
— China- Benxi Steel is offering USD 455/MT CFR basis. Previous offer- USD 445/MT CFR basis.
— South Korea- Hyundai Steel’s offer stands at USD 445/MT CFR basis. Previous offer- USD 440/MT CFR basis.
— Japan’s Nippon Steel’s offer continues to hover at USD 445/MT CFR basis.
CIS nations increased HRC export offers on resumed demand
CIS origin HRC offer increased by USD 10-15/MT on rising demand from a few importing nations. The current export offer is assessed at USD 365-375/MT FoB Black Sea, which was USD 350-365/MT FoB basis a week ago.
| Particulars | Currency | Offers |
| HRC, FoB China | USD/MT | 430-435 |
| CRC, FoB China | USD/MT | 465-475 |
| HRC, FoB Black Sea | USD/MT | 365-375 |
| CRC, FoB Black Sea` | USD/MT | 405-415 |
| HRC, CFR Vietnam from India | USD/MT | 430-435 |
| HRC, CFR Vietnam from China | USD/MT | 455 |
| Vietnam Formosa HRC (skin pass SAE1006) offers | USD/MT | 440 |
Source: SteelMint Research
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