Chinese HRC export offers have shown down-trend this week by USD 5/MT owing to weak demand prevails in the domestic market. Post New year Holidays and fall in paper market has resulted to bearish sentiments in the China’s domestic market.
Current export offers of HRC are assessed in the range of USD 495-500/MT, FoB China for Mar/Apr shipments, whereas last week offers were recorded in the range at USD 500-510/MT, FoB basis.
Meanwhile, HRC prices in China’s domestic market are hovering in the range of RMB 3,730-3,750/MT which is equivalent to USD 543-546/MT.
Chinese manufacturers have decided to cut down the HRC prices, since the prices in the paper market have slumped last Friday and it continues to fall further this week. Although, inventory levels have gone up coupled with weak demand, providing enough scope for the manufacturers to decrease the prices. Hence demand supply mismatch will lead to fall in HRC prices.
However, trading activities remain lean since the overseas buyers are anticipating further fall in HRC export offers. Moreover, Chinese steelmakers are eyeing on India’s plan to invest more in infrastructure spending and reduce import duties on certain commodities required in steel making process.
Global HRC Export Offers-
A market source in conversation with SteelMint shared that Japanese HRC export offers to Bangaldesh are at USD 580/MT, CFR Chittagong. Thus, it would be around USD 540/MT, FoB Japan.
However, HRC export offers from India are heard to be in the range of USD 500-510/MT,FoB India.
CIS-origin HRC export offers are hovering in the range of USD 480-490/MT,FoB Black Sea. Whereas last week export offers are registered in the range of USD 470-500/MT,FoB basis.
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