Global HRC & CRC Market Overview- Week 51, 2019

Formosa receives active bookings on its recent HRC offers- Vietnam based participants shared that, buyers are actively booking HRC from Formosa as it seemed competitive compared to imported HRC offers from China, Japan, and India.

Also, company officials reported that “active HRC bookings at fresh offers floated last week. Last week Formosa released offer for HRC (SAE 1006, skin pass) at USD 485/MT CIF Ho Chi Minh for Feb deliveries, up by USD 15 against last month”.

Notably, Formosa is planning to undergo maintenance shutdown in its hot strip mill for 20 days, starting 30th Dec’19 until 17th Jan’20.The estimated impact of the shutdown on production comes around 35%, which may result in a short supply in the near term.

Current HRC export offers to Vietnam-

1. HRC (SAE 1006) 2mm, China- Rizhao Steel’s offer increased to USD 490/MT CFR basis, which was USD 485/MT CFR basis a week ago.

2. HRC (SAE 1006) 2mm, South Korea- Hyundai Steel’s offer stands at USD 485/MT CFR basis, stable over the previous week.

3. HRC (SAE 1006) 2mm, Japan- Nippon Steel is offering at USD 490/MT CFR basis, unchanged over the previous week.

4. HRC (SAE 1006) 2mm, India – Few Indian steel mills are heard to have hold offers. Previous offers were reported at USD 480-485/MT CFR basis.

Indian steel mills eyeing for a hike in HRC export offers to Vietnam- Market sources based in India shared that, major Indian steelmakers planning to increase HRC export offers to Vietnam owing to an increase in global prices.

Market sources shared that indicative HRC offers are heard to be around USD 490-495/MT CFR Vietnam for Feb-March deliveries.

Chinese HRC export offers strengthen further over supply restrictions- The Chinese HRC export offers moved up by USD 10/MT on the back of bullish market sentiments in the domestic market amid short supply due to slow logistical movements.

Current HRC export offers stand at USD 480-485/MT FoB China, which was USD 470-475/MT FoB basis a week ago.

Meanwhile prices in domestic regions stood around RMB 3,880-3,890/MT in (Eastern China) and RMB 3,640-3,650/MT (Northern China).

However, prices remained unchanged as market sentiments have started improving amid easing tensions between the US and China. Thus, logistics issues combined with bullish market sentiments may further result in an uptrend in Chinese steel prices towards the year-end.

CIS-origin HRC export offers increases following uptrend in global prices- This week, the CIS origin HRC export offers surged by USD 35/MT on a weekly premise over the previous week offers.

Thus, currently, CIS-origin HRC export offers stand at USD 460-470/MT FoB Black Sea in contrast with USD 425-435/MT FoB basis in the previous week.

Global HRC Market Overview – Week 51,2019

Source: SteelMint Research