Chinese HRC Export Offers Shoot up over Domestic Gains

Nation’s HRC export offers are continuously moving in upward direction and has regained the growth by USD 20-30/MT over strengthening domestic market.

Chinese HRC export offers shoot up remarkably by USD 20-30/MT, W-o-W basis on account of bullish sentiments experienced in nation’s domestic market.Owing to higher profit margins in domestic market Chinese mills are reluctant to lower the offers in the export market.

Currently HRC commercial grade ASTM A36 export offers are prevailing in the range of USD 575-600/MT, FoB China. Payment are made on letter of credit basis for 1,000-10,000 MT.

However prices of HRC in domestic market declined by RMB 120-130/MT and are heard to be in the range of RMB 4,210-4,230/MT (USD 646-649/MT) including VAT & other taxes.

Major mills have kept the export offers unchanged for this week at USD 595-600/MT FoB basis and are reluctant to accept the lower bids from overseas buyers.

Meanwhile a deal of 4000 MT have been concluded with South Korean buyer in the range of USD 600/MT on FoB basis.Since market participants mentioned that Korean mills like Posco and Hyundai will be shutting down for maintenance in third quarter and are ready to accept the offers at higher prices

CIS-Origin HRC Export Offers Jumped by USD 30/MT
CIS nations have also increased the HRC export offers by USD 30-35/MT on positive response for higher export offers from major mills. Currently HRC export offers are prevailing in the range of USD 600-610/MT, FoB Black Sea.However no major deals have been concluded.

Global Export Offers-Week 38

Source-SteelMint Research
*including VAT