Global Flat Steel Market Overview -Week 32,2018

Chinese HRC export offers continued to remain firm-Chinese HRC export offers have continued to remain steady despite uptrend in domestic prices in Shanghai and Tangshan regions.Meanwhile buyers in South East Asian countries are also bidding on lower side.

Currently Chinese HRC export offers heard around USD 575-585/MT, FoB China.Payment are made on letter of credit basis for 1,000-10,000 MT.

Prices in domestic market moved up by RMB 70/MT W-o-W basis.Prices of HRC in the domestic market are gauged at RMB 4,310-4,320/MT (ex-works) in Eastern China and 4,230-4,240 /MT (Northern China).

Thus production cuts in China may reduce supply in near term which may results in increased prices in domestic market.

CIS origin HRC export offers for September moved up– CIS origin HRC export offers increases by 5-10/MT for September shipments despite low demand from overseas buyers.

Currently HRC (2.5 mm S235 JR) export offers are heard around USD 565-575/MT FoB Black Sea.However last week the prices stood in the range of USD 560-565/MT FoB basis.

However major mills are quoting HRC export offers on higher side which is around USD 575-580/MT FoB basis.

Imported HRC offers to Vietnam from China remain firm-This week imported offers of HRC continued to remain firm amid weak purchases from end users in Vietnam.

Currently imported offers of HRC to Vietnam from China is assessed at USD 595-605/MT CFR basis.Last week the offers was in range of USD 600-605/MT CFR basis.

Market sources shared that end users in Vietnam have concluded a deal of 10,000 MT of HRC (SAE 1006) from Chinese based Shandong steel at USD 592/MT CFR basis.

However presently no active offers for imported HRC from Japan,Korean and Russian mills for September shipments.

Imported HRC offers to Bangladesh remain firm,deal concluded-Imported HRC offers to Bangladesh from China remain stable.Recently market participant based shared that major HRC importer based Bangladesh has booked HRC (1.8 -2) mm of 3,000 MT from China at USD 646/MT CFR Chittagong for September shipments.

However no major deal has been concluded from Japan or South Korea.

Indian steelmakers actively exporting HRC to Vietnam and Nepal– Last week Indian major steel mill based in eastern region has concluded a deal of 5,000 MT of HRC cargo to Vietnam based Chinh Dai in the range of USD 595/MT CFR basis.

Meanwhile another major Indian steel mill has booked 15,000 MT of HRC (2mm, IS 10748) last week for export to Nepal at around USD 585/MT (ex-factory). The CFR Raxaul border price would be higher by USD 20-25/MT which will come around USD 605-610/MT CFR basis.The material delivery is scheduled in end of August or early September.

Global Flat Steel Export Offers – Week 32, 2018

Source-SteelMint Research