China’s HRC Export Offers Slip Further by USD 10-15/MT

After the price rally in China’s domestic and export HRC market which continued for two months from Feb-Apr’15, prices in China seems to be retreating once again.

Today, HRC export offers have slid down further by USD 10-15/MT against previous week and is assessed at USD 365-370/MT, FoB China.

The reason being volatility in country’s domestic market. Due to bearish sentiments prevailing in the market, buyers in China are waiting for prices to fall further and thus they are not showing any buying interest. This has resulted in fall in country’s domestic HRC prices with subsequent fall in its export prices also.

While Chinese HRC offers are sliding down week-on-week basis, no fresh offers are being heard from countries like Japan and Korea. As per market sources, sellers in both the countries are booked up till Jul’16.

In Bangladesh, currently HRC offers are being made from Taiwan at the rate of USD 450-455/MT, CFR Chittagong. At present the demand in country is quite muted owing to slack in construction activities with rainy season approaching and upcoming Ramadan festival in first week of Jun’16.

HRC offers from CIS countries are unchanged at USD 465-470/MT, FoB Black Sea.

Indian Exporters Hold HRC Offers

Indian exporters hold HRC offers this week. Current offers for base grade HRC is assessed at USD 450-455/MT FOB India and around 490-495/MT CFR Europe.  Since, European Union (EU) has initialed its anti-subsidy investigations on HRC from China last week, Indian exporters are hopeful that buying interest will generate from Europe in the upcoming days.

HRC prices as on 23 May’16

Source: SteelMint Research