Chinese HRC export offers continue to remain downside – Chinese HRC exports offers witnessed slight correction by USD 5/MT on weekly basis due to slow demand from overseas buyers.
Currently nation’s HRC export price assessment are at USD 500-505/MT FoB basis against USD 505-510/MT in previous week. However major steel mills are offering HRC at around USD 510-515/MT FoB basis.
Meanwhile prices in Eastern China stood at RMB 3,690-3,700/MT. Prices mentioned above are inclusive of 13% VAT.
Continual fall in nation’s HRC prices due to fluctuating futures,weakening demand from overseas buyers and depreciation in Yuan have kept HRC export offers on lower side.
Also USA proposing 10% tariff on USD 300 billion of Chinese imports effective from Sep’19 resulted to bearish sentiments and downturn in steel prices.
Imported HRC offers to Vietnam continue to remain under pressure- Vietnam’s imported HRC offers soften further from major exporting nations over weak trades happening in Vietnam market.
Current HRC trades to Vietnam
1.HRC (SAE 1006) 2-3mm/Chinese offer- Benxi Steel is at USD 500/MT CFR Vietnam.In the beginning of the week offers were around USD 508/MT CFR basis.
1.HRC (SAE 1006) 2-3mm/Chinese offer- Laiwu Steel is at USD 490/MT CFR Vietnam.In the beginning of the week offers were around USD 500/MT CFR basis.
2.HRC (SAE 1006) 2-3mm/India – India offer at USD 500/MT CFR Vietnam.
3.HRC (SAE 1006) 2-3mm/Korean offer- Hyundai Steel is at USD 520/MT CFR Vietnam.
4.HRC (SAE 1006) 2-3mm/Japan offer- Nippon Steel is at USD 520/MT CFR Vietnam.
5.HRC (SAE 1006) 2-3mm/Brazil offer- Arcelor Mittal is at USD 503/MT CFR Vietnam.In the beginning of the week offers were around USD 507/MT CFR basis.
Indian HRC export offers soften over dull trades – Major Indian steel makers have lowered their HRC export offers to Nepal and Vietnam amid slow demand from overseas buyers.
Last week Indian steel mills booked around 5 rakes of HRC with Nepal at USD 525/MT CFR basis for Aug- sep shipments.
Also Indian mills are offering not less than USD 500-505/MT CFR Vietnam.However buyers in Vietnam are bidding on lower side which is around USD 495/MT CFR basis.
Global HRC market overview- Week 32, 2019
| Particulars | Currency | Prices |
| HRC, FoB China | USD/MT | 500-505 |
| CRC, FoB China | USD/MT | 540-550 |
| HRC, CFR Vietnam from China | USD/MT | 490-500 |
| HRC, CFR Vietnam from India | USD/MT | 500-505 |
| HRC (SAE 1006) CIF Vietnam Formosa | USD/MT | 541 |
| HRC (SS 400) CIF Vietnam Formosa | USD/MT | 536 |
| HRC ,CFR Nepal from India | USD/MT | 525-530 |
Source- SteelMint Research
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