China’s HRC Export Offers Fall, Japan & CIS-Countries Offer Surges

The week 38 opened with a fall in China’s HRC export offers by USD 5-10/MT against last week on account of strong speculations in the market that Chinese mills might cut their products prices amid domestic market weakness. This week offers for HRC (A36) from China are  heard at USD 385-390/MT, FoB China basis.

However, in contrast to the speculations in the market, Chinese steel biggies have raised their flat products offers by RMB 100-150/MT (USD 15-22/MT), thus inducing positive sentiments in the country’s steel market.

Although there are no reports of hike in export prices yet due to mid-Autumn holidays in the latter half of the week, It is likely that the China-origin HRC prices may move up in the start of next week.

While Chinese offers have registered a fall this week, HRC offers from Japan/Korea and CIS countries have risen by USD 10/MT and USD 20-25/MT respectively.

Current HRC offers from Japan/Korea are being heard at USD 430/MT, FoB basis whereas CIS-origin HRC offers are at USD 385-390//MT, FoB Black Sea.

Korean HRC(2mm) offers to Bangladesh are heard at USD 445-450/MT, CFR Chittagong. The steel demand in the country is anticipated to improve in upcoming days post Eid festival.

Since past one month, even Indian manufacturers have become quite active in export market owing to good sales realizations from overseas sales.

As reported, Tata steel has exported about 3,000 tonnes of HRC to Nepal from its new greenfield unit at Kalinanagar. The company has set high export targets from its Kalinanagar plant this fiscal year. HRC offers from India are currently being assessed at USD 425-430/MT, FoB India basis.

HRC Prices as on 15 Sep’16