Bullish Sentiments Drive Up Global HRC Offers

There seems to be no stopping of price rally in case of flat steel products as the global HRC offers increased by USD 30-35/MT on Monday 25 April against last week.

Current HRC export offers from China are assessed at USD 460-465/MT, FoB China whereas Japanese/Korean offers are assessed at USD 460-470/MT, FoB basis. CIS countries are offering HRC at USD 450-460/MT, FoB Black Sea.

Steel prices in China have jumped by 42% so far this year backed by improvement in demand, inventory restocking and government’s economic reforms.

With the upcoming International Horticulture expo in Tangshan, China, mills there are required to cut steel production by 30% over 22-26 April and by 50% from 27 April to 3 May in order to improve air quality. Also if this does not improve the air quality to required standard, more cuts will be implemented in the city.

As Tangshan is one of the major steel producing city of China, production cuts here has compelled market participants to stock up steel resulting in increase in domestic and export steel offers.

With surge in China’s HRC offers, Japan, Korea, and CIS countries have also raised their export offers subsequently.

Indian manufacturers have also resumed HRC exports after a long hiatus. Currently one of the Indian steel majors is offering HRC at USD 450-455/MT, FoB basis.

HRC Prices as on 25 Apr’16

Source: SteelMint Research