China’s Flat Steel Offers to India Remain Unchanged W-o-W

HRC/CRC prices have remained flat over past week as Chinese steel mills are reluctant to bear further losses.

Current offers for 2.5 mm HRC (grade SS400) from China are assessed at USD 280/MT, from Japan/Korea at USD 320-325/MT, and from Black Sea at USD 295-300/MT. All prices are on CNF India basis.

While 0.9 mm CRC is being offered at USD 305/MT from China, at USD 390 from Japan and at USD 410/MT from Korea. All offers are on CNF India basis.

According to CISA (China Iron and Steel Association), major steel producers in China suffered total losses of 28.12 billion Yuan (USD 4.42 billion) from Jan’15-Sep’15. Many steel makers chose to suspend production and sell some assets to avoid further losses.

Steel output in China fell sharply this year. However the fall in domestic demand was much larger as compared to output. Overcapacity led to record low steel prices.As per market sources, Chinese steel demand is likely to dive 5% further in next 12 months.

Analyzing the current situation it is predicted that Chinese steel industry will face capacity reduction and reorganization in coming years leading to closure of many small steel mills due to liquidity crisis.

Public Hearing on Safeguard Duty Case

Public hearing on safeguard duty case is scheduled today in Delhi where affected parties will be presenting their justification against safeguard duty to DG Safeguards. However the final decision on whether the duty should continue beyond 200 days will be announced in Feb’ 2016.

Prices of HRC/CRC as on 16 Nov’ 15

Source: SteelMint Research