Chinese Manufacturers have further strengthen their flat product export offers by USD 30-35/MT owing to higher cost of production and increasing steel futures.
Recent hike in coking coal cost by 7-8% has also pushed the Chinese manufacturers to increase the prices both in domestic and overseas market.
The HRC offers from China are hovering in the range of USD 440-445/MT FoB China basis. Whereas CRC export offers are assessed to be at USD 500-505/MT. Currently no major deals are being heard in the market as prevailing prices are considered to be too high by the overseas buyers.
Despite this sellers are reluctant to lower down the export offers below domestic prices.But sooner or later buyers have to accept these prices.
CIS-origin export offers of HRC are in the range of USD 420-430/MT while CRC offers are heard at USD 490-495/MT FoB Black sea.
Looking at the Chinese export offers and rising production cost,Japanese and Korean steel makers also raise the export offers by 30-35/MT. Last week offers are assessed at USD 460-470/MT,FoB basis.However, market participants expect prices may rise further.
HRC offers to Bangladesh are assessed at USD 485-490/MT, CNF Chittagong.
Meanwhile, export offers of HRC from India are heard to be at USD 445-450/MT FoB India.Whereas CRC is being offered in the range of USD 530/MT,FoB basis.
HRC Prices as on 7th Nov’2016
| Particulars | Delivey | Grade | Currency | Price | W-o-W | M-O-M | Remarks |
| China Export | FoB China | SS400 | USD/MT | 440-445 | 415-420 | 370-375 | Chinese mills raise offers further |
| Japan Export | FoB Japan | ASTM A36 | USD/MT | 460-470 | 440-450 | 430-435 | Offers likley to be revised |
| CIS Export | FoB Black Sea | SAE 1006 | USD/MT | 420-430 | 425-430 | 395-400 | – |
| India Export | FoB India | SAE 1006 | USD/MT | 445-450 | 430-440 | 435-440 | Limited offers |
| India Domestic | Ex-Mum (Incl.of excise duty) | IS 2062 | INR/MT | 38,000-38,500 | 37,500-38,000 | 38,000-38,500 | Traders are currently selling stocks at the same price |
Source- SteelMint Research
CRC Prices as on 7th Nov 2016
| Particulars | Delivey | Grade | Currency | Price | W-o-w | M-O-M | Remarks |
| China Export | FoB China | 0.9mm SPCC | USD/MT | 500-505 | 480-485 | 440-445 | Offers move up on high cost of production |
| Korea Export | FoB Korea | 0.9mm SPCC | USD/MT | 530-535 | 520-530 | 530-535 | Limited offers, prices may go up further |
| CIS Export | FoB Black Sea | 2.5 mm SPCC | USD/MT | 490-495 | 480-490 | 440-445 | |
| India Export | FoB India | IS 513 gr | USD/MT | 530-535 | 510-515 | 510-515 | POSCO (MH) Offering CRC at $530/t FOB for SE Asia |
| India Domestic | Ex-Mum (Incl.of excise duty) | IS 513 gr | INR/MT | 43,500-44,000 | 43,000-43,500 | 43,500-44,000 | Prices are expected to increase by INR 500-1000/MT |
Source- SteelMint Research
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