SteelMint’s Indian HRC (SAE 1006) export index stands at $936/t FoB East-coast basis, up by $9/t w-o-w against $927/t FoB basis. Indian steelmakers continue to keep HRC export offers higher following an uptrend in domestic steel prices and global cues. Hike in Chinese steel futures and robust demand at increased offers from Middle East & Vietnam have kept Indian HRC export market sentiments supported.
The recent HRC export offers by Indian mills are as below:
- HRC export offers are at $940-950/t CFR Vietnam for May end – June shipments.
- HRC export offers stood around $990-1000/t CFR Middle East for May end June shipments.
- HRC export price indications for Europe are at $1050/t CFR for Jun shipments.
- However, no major deals have been concluded yet at above offers.
Meanwhile, Europe’s leading steel mill- ArcelorMittal has increased the coil prices by Euro 50/t. The current price of HRC stands at around Euro 970/t, CRC and hot-dipped galvanized at Euro 1,120/t. Last week the company raised its steel prices by Euro 20/t. Bullish sentiment across the European market and supply shortage led to frequent hikes in coil prices. Also, market sources anticipate that prices will remain strong in the near term.
Rationale: Nine indicative prices were considered as T2 inputs, with an average price of $936/t. The final price was an average of T2 inputs. The CFR prices were converted to FoB equivalent by deducting freight costs from the buyer/seller.
Global HRC market overview
1. China’s HRC offers to move up further- Delayed announcement by Chinese Govt. on the export rebate cut lead to a continual increase in Chinese HRC export offers. This week the offers have gone up by $5/t to $880-885/t FoB China compared with $875-880/t FoB basis a week back. Meanwhile, tier-I mills are offering on the higher side at $920-930/t FoB basis. SHFE HRC futures contract rose sharply today and closed at RMB 5,429 against yesterday’s close of RMB 5,370.
2. CIS origin HRC offers continue to spike- The offers have further increased by $70/t on the back of improving demand and decent export orders during the past couple of weeks. The current week offers stand at around $945-955/t FoB Black Sea, contrasted against $875-915/t FoB basis a week back.
3. Imported HRC offers to Vietnam remain unchanged- All the major exporting nations kept their offers for Vietnam unchanged on the anticipated export rebate cut announcement.
a.) Chinese mills are offering at $930-940/t CFR Vietnam.
b.) Japanese mills are offering at $1,000/t CFR Vietnam.
c.) Indian mills are offering around $940-950/t CFR Vietnam.
Meanwhile, domestic HRC is cheaper than imports. Domestic offers are mentioned below:
i.) Formosa’s offers for HRC skin-pass are at $910-912/t CIF basis and non-skin pass at $905-907/t CIF basis for June shipment. Offers are up by $140-145/t monthly.
ii.) Hoa Phat has revised June delivery HRC prices at $895-910/t CIF basis, up by $135/t.
4. Imported HRC offers to Pakistan remain higher- Major exporting nations have kept the imported HRC offers to Pakistan firm, gaining support from the uptrend in global HRC prices.
a.) Japanese mills are offering at $1,020/t CFR basis, up by $20/t w-o-w.
b.) South Korean mills have rolled over their offers at $1,000-1030/t CFR basis.
c.) Taiwanese mills have started offering at $990/t CFR basis.
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