China’s CRC Export Offers Up amid Bullish Sentiments

Albeit, China’s CRC export offers are moving up, Indian importers are not much keen in booking Chinese exports due to BIS license being made mandatory from 18 Mar’16.

The year 2016 has started on a good note for China’s CRC industry. After a hike of about USD 25-30/MT in China’s CRC export offers reported by SteelMint on 6 Jan’16, its export prices have once again moved up by USD 10-15/MT.

Current offers for 0.9 mm CRC are being assessed at USD 350-355/MT, FoB China for Mar/Apr shipments. The key reason behind the same being hike in China’s domestic CRC prices supported by decisions taken by Chinese steel majors to raise prices of their flat products for February.

Domestic CRC prices in China are assessed at RMB 2,750-2,850/MT up by RMB 50/MT (USD 8/MT) against last week, highest price since Jul’15.

However CRC offers from Japan remained unchanged at USD 380/MT and from Russia at USD 310/MT, CNF India basis against last week. No fresh offers are being heard from Korea.

As per market sources, currently Indian importers are not much interested in booking HRC/CRC imports from China owing to quality control regulations (BIS license) being made mandatory by the Indian government.

Under BIS license scheme, the production and sale of steel products that does not meet Bureau of Indian Standard (BIS) approval has been banned. This order will come in to effect from 18 Mar’16.

“Not many Chinese mills have BIS certification and thus we are not interested in booking flat products from China because orders if booked now will arrive at India after 18 March”; quoted a Mumbai based Importer.

0.9mm CRC Prices as on 20 Jan’16

Source: SteelMint Research