Global HRC Export Offers Decline: Week 43, Update

Chinese HRC export offers slide further over limited buying- Chinese HRC export offers slipped further over thin trades and fewer bookings in domestic and export market.Sluggish demand from automotive and household appliance industries is reflecting in Chinese steel prices.Thus Chinese mills are expecting further downtrend in steel prices.

Currently HRC export offers from China is assessed around USD 545-560/MT FoB basis. However last week offers was assessed around USD 555-565/MT FoB basis.

However prices of HRC in the domestic market is presently assessed at RMB 4,190-4,210/MT (ex-works) in Eastern China and RMB 4,090-4,100 /MT in (Northern China).

CIS origin HRC export offers decline further amid oversupply – CIS-origin HRC export offers decline further in the backdrop of excess supply and weaker demand from overseas market.

Currently CIS origin HRC export offers heard around USD 517-523/MT, FoB Black Sea.Last week the offers stood at USD 515-540/MT FoB Black Sea.

However major mills were offering on higher side which is around USD 520-523/MT FoB Black Sea.

Meanwhile Turkey market continued to remain bearish which again remain a threat to CIS exporters as they pay less for imported HRC.

Japanese mills reduce HRC export offers to India – Indian importers based in southern India have reduced HRC export offers. Around 26,000 MT HRC has been booked at USD 605-610/MT, CFR. A month ago, booking made was at USD 625-630/MT, CFR.

Limited HRC export deals concluded by Indian mills – Market sources shared with SteelMint that a major Indian mill has concluded an export deal of around 10,000-20,000 MT HRC to Vietnam at USD 562-565/MT CFR basis for November shipments.

Indian HRC export offers to Nepal –Indian HRC export offers to Nepal is assessed at USD 590-600/Mt (ex-factory) which will come around USD 612/MT landed Raxaul border.However deals are in discussions and yet to be concluded.

Imported HRC Offers to Vietnam inch down – Imported HRC offers continued to remain on downside in line with lower HRC export offers from Indian and Chinese mills.Meanwhile domestic producer – Formosa also revised HRC (skin pass) offers last week to USD 570/MT CFR basis for Dec shipments.

Current HRC trade offers to Vietnam – Week 43, 2018
1.HRC (SAE 1006) 2-3mm / Chinese offer – Benxi Steel is at USD 565/MT CFR Vietnam.

2.HRC (SAE 1006) 2-3mm / Chinese offer – Laiwu Steel is at USD 555/MT CFR Vietnam.

3.HRC (SAE 1006) 2-3mm / Chinese offer – Rizhao Steel is at USD 560/MT CFR Vietnam.

4.HRC (SAE 1006)) 2-3mm/ Korean offer- Hyundai Steel offer at USD 585/MT CFR basis. Last offers were at USD 590/MT CFR basis.

5.HRC (SAE 1006)) 2-3mm/ Indian offer at USD 562-563/MT CFR basis.

Global Flat Steel Export Offers – Week 43, 2018

Source-SteelMint Research