Japan: HRC Export Offers Likely to Jump by USD 10-15/MT Shortly

Japanese exporters have become quite active in HRC export market owing to spurt in global HRC prices.Japanese mills have planned to raise the HRC export offers by USD 10-15/MT in line with Chinese HRC export offers for Aug-Sep shipments .

Market participants mentioned that presently Japan HRC export offers are hovering in the range of USD 525/MT, CFR Mumbai which is equivalent to USD 500/MT FoB Japan. Offers are likely to touch level of USD 540/MT, CFR Mumbai, market participants quoted.

Indian importers remain silent owing to higher global prices and comparatively cheaper domestic offers. As per market sources report, around a month back nearly 25,000 MT HRC was booked from Japan which has already reached at Indian port. Following this Indian HRC importers have turned silent.

Chinese HRC Export Offers Rise Despite Softening domestic market
Chinese HRC export offers witness steep rise of USD 17/MT,W-o-W basis despite softening of market sentiments in the domestic market.

Currently HRC commercial grade ASTM A36 export offers are prevailing in the range of USD 495-505/MT, FoB China. Beginning of last week the offers were heard in the range of USD 480-490/MT,FoB China. However towards end of last week Chinese HRC export offers were heard to have climbed to USD 510/MT, FoB. Payment are made on letter of credit basis for 1,000-10,000 metric tonnes.

Meanwhile prices of HRC in domestic market are heard in the range of RMB 3,750-3,780/MT which is equivalent to USD 555-560/MT,including VAT & other taxes. Domestic HRC prices in China have come down on weekly premises.

However,some deals have been concluded with Pakistan in range of USD 515/MT,CFR basis and with Vietnam at USD 505-510/MT,CFR basis.

Since the HRC stock levels are low in China creating supply demand mismatch and making Chinese exporters more cautious about the export prices

HRC export offers as on 25th Jul’17

Source-SteelMint Research