Weekly: Global HRC and CRC market overview

Chinese HRC export offers increased marginally, trades remain subdued

Nation’s HRC export offers rose marginally, however, buyers are reluctant to make any new bookings on increased offers.

Thus, the current HRC export offer continues to hover at $ 440-450/t FoB China. Last week the offers were in the range of $ 435-440/MT FoB basis.

On the other hand, domestic HRC prices weakened by RMB 10-20/t to RMB 3,640-3,650/t (Eastern China) as compared to RMB 3,650-3,670/t. Bad weather conditions and increased concern over a spike in COVID-19 cases in a few regions including Beijing weighed on the futures market gains. This, in turn, pulled down the prices in the domestic market.

Indian mills raise HRC offers on decent export bookings-

Decent export bookings over the past few weeks coupled with rising global HRC offers pushed Indian steel mills to raise HRC export offers.

The current HRC export offer stands at $ 445/t CFR Vietnam, up by around $ 10/t as against $435-440/t CFR basis.

Deals reported in the previous week-

1. A private steel manufacturer has booked 20,000t HRC at $ 438-440/t CFR Vietnam for July end- Aug shipment.

2. In another deal reported this week another Indian private mill booked a parcel of 15,000-20,000t HRC to Vietnam at $ 438-439/t CFR basis.

Imported HRC offers to Vietnam continue to move upward

Improved buying among importers based in Vietnam resulted in upside in HRC offers by $10-15 from major exporting nations. However, no deals were confirmed at these prices.

— China- Benxi Steel’s offer stands at $465-470/t CFR basis. Last week, the offer was around $455/t CFR basis.

— China- Chunghung Steel’s offer stands at $450/t CFR basis. Last week the offers were in the range of $ 445/MT CFR basis.

— Japan- Nippon steel and JFE are offering at $460/t CFR basis. Last week the offers were in the range of $ 450/t CFR basis.

— South Korea- Hyundai Steel’s offer stands at $460/t CFR basis. Last week the offer was around $450/t CFR basis.

— Russia- Severstal offering at $ 440/t CFR basis.

CIS origin HRC export offer rises on higher raw material costs-

The HRC export offers from CIS nations have increased significantly by $ 40-50/t with the increase in raw material costs. Current week offer stands at $ 405-410/t FoB Black Sea in contrast with $ 365-375/t in the preceding week.

UAE: Buying sentiments remain bearish on higher offers

SteelMint in conversation with reliable market participants in UAE learned that importers have started making inquiries about HRC (SAE 1006, 1.8-2mm) offers from major exporting nations. However, increased offers from exporting nations turned the buying sentiments sluggish.

— Indian steel mills are offering $ 440-450/t CFR basis. Last week the offers were in range of $ 420-430/t CFR basis

— China offer stands at $ 460-470/t CFR basis. Last week the offer was in the range of $ 460-465/t CFR basis.

Source: SteelMint Research