HRC Export Offers from CIS Countries Fall Following China’s Downtrend

The uninterrupted fall in China’s flat products export offers over last one month have forced steel mills in CIS countries also to lower down their export prices.

Currently, HRC from CIS countries are being offered in the range of USD 420-430/MT, FoB Black Sea, down by USD 30-40MT against last Monday.

Chinese HRC Offers

Along with CIS countries, HRC export offers from China have also registered a fall of USD 10-15/MT w-o-w basis. Commercial-grade HRC offers from China are assessed at USD 335-340/MT, FoB China.

As the price surge in China’s domestic and export prices was not backed by any fundamentals, prices started retreating to previous levels of what it was during the end of year 2015.

Japanese/Korean Offers

While no fresh HRC offers are being heard from Korea and Japan, last offers (of 1.6 mm HRC) which were heard about a month ago were in the range of USD 480-490/MT, CFR Chittagong.

With the onset of monsoons since last week of May and start of holy month of Ramadan from today, domestic demand in Bangladesh market has been quite dull. It is believed that fresh offers from Korean and Japanese firms will be heard only towards the end of June month.

Indian HR Export Offers

Indian exporters have been heard to conclude HRC export deals to Europe at around USD 455-460/MT, CFR Europe , which comes to around USD 420-425/MT, FoB India. However, with prices falling continuously in the global market, buying interest have been dampened for Indian cargoes which are being offered at higher rates as compared to Chinese offers.

HRC Prices as on 6 Jun’16

Source: SteelMint Research