Global HRC & CRC Market Overview

Chinese HRC export offers decline further over increased inventories amid Corona-virus outbreak- The Chinese HRC export offers witnesses a continual decline by USD 15-20/MT over increased inventory levels and dull buying on the back of novel Corona-virus outbreak.

The hindered logistics and delayed resumption of market activities in the nation has led to bearish market sentiments which resulted to plunge in nation’s HRC export prices.

Thus the current HRC export offer stands at USD 480-490/MT FoB China, which was USD 500-505/MT in the preceding week.

Further, the domestic HRC prices have slashed by around RMB 130/MT to RMB 3,500-3,520/MT in contrast with RMB 3,630-3,650/MT in the preceding week.

Imported HRC offers to Vietnam fall – This week, imported HRC offers to Vietnam have witnessed further fall by around USD 15-20/MT from China. The impending resumption of Chinese steelmakers due to novel Corona-virus has widely affected market sentiments and in turn leads to weakening offers to Vietnam.

Meanwhile, Vietnam’s domestic integrated steelmaker Formosa Ha Tinh is expected to announce revision of HRC prices for March-Apr shipments towards the end of the current week.

Current imported HRC offers to Vietnam-
1.HRC (SAE 1006) 2mm, China- Benxi is offering at USD 480/MT CFR basis in contrast with USD 500/MT CFR basis towards the end of the previous week.

2.HRC (SAE 1006) 2mm, China- Maanshan Steel’s offer is at USD 470/MT CFR basis. The previous offer was at USD 490/MT CFR basis.

3.HRC (SAE 1006) 2mm, China- Rizhao Steel’s offer is at USD 475/MT CFR basis.

4.HRC (SAE 1006) 2mm, South Korea- Hyundai Steel’s offer is at USD 485/MT CFR basis.

5. HRC (SAE 1006) 2mm, India- Indicative bids from Indian steel manufacturers were heard of around USD 520/MT CFR basis.

Imported HRC offers to Pakistan from China inches down- Chinese steelmakers are offering HRC (SS400) position cargo for March shipments at around USD 475/MT CFR basis, down by USD 15/MT as compared with  USD 490/MT a week ago. However, customers are bidding around USD 470/MT CFR basis.

Meanwhile, Chinese mills are also offering HRC (SAE 1006) at USD 485/MT CFR basis.No major deals have been concluded yet.

Further, amid improvement in domestic demand, the Japanese steelmaker’s indicative HRC offers to Pakistan heard at USD 540/MT CFR basis. However, the Pakistani importers have placed firm bids of around USD 520/MT CFR basis. No major deals have been concluded at these offers.

Imported HRC export offers to UAE remain firm – Amid higher prices in the domestic market and low allocations for exports, Indian steel manufacturers are holding back offers for March shipments.

However, market participants shared that indicative HRC export offers from Indian steel mills is heard at USD 525/MT CFR UAE. Also imported HRC offers to UAE from China is around USD 510-515/MT CFR basis.

CIS-origin HRC export offers inch down amid slow trades- The CIS-origin HRC export offers softened by USD 5/MT this week amid slow trades in the past two weeks.

Thus, currently, the HRC export offers stand at USD 470-485/MT FOB Black Sea as compared with USD 475-490/MT FoB basis in the previous week.

Source: SteelMint Research