Chinese steel manufacturers have become agile and have swiftly raised HRC export offers by USD 15/MT,W-o-W basis for Sep-Oct’17 shipments in the wake of surge in domestic HRC prices. Boost in domestic demand has supported hike in prices which results to rise in HRC export offers in global market.
Currently HRC commercial grade ASTM A36 export offers are prevailing in the range of USD 500-520/MT, FoB China. 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 3,860-3,890/MT which is equivalent to USD 574-578/MT,including VAT & other taxes. Domestic HRC prices in China moved up by RMB 110/MT against last week.
Major mills in China are quoting prices in the range of USD 520-535/MT on FoB basis and they are reluctant to offer any discounts on those prices.
Indian steel mills raised HRC export offers by USD 5-10/MT
Market participants mentioned that Indian mills have also raised the HRC export offers by USD 5-10/MT,W-o-W basis on rising global prices and are heard aound USD 520-525/MT FoB basis which were seen at USD 515/MT, FoB last week.
Market participants indicated that South Korean steel mills are planning to raise offers by around USD 10-15/MT owing to hike in global prices.
HRC export offers as on 1 Aug’17
| Particulars | Prices in USD/MT |
| FoB China | 500-520 |
| CFR Vietnam from China | 510-520 |
| FoB India | 520-525 |
| FoB Japan | 500 |
| FoB South Korea | 495-500 |
| FoB Black Sea | 485-510 |
Source: SteelMint Research
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