Global HRC Market Overview : Week 1, 2018

Major Indian steel makers hold HRC export offers-Sources :Indian manufacturers have hold the HRC export offers this week owing to prevailing holidays in major markets.No fresh offers have been quoted by Indian HRC exporters since they are waiting to have clear indication about the market sentiments in the coming week.

Last week HRC export offers from India are hovering around USD 575-585/MT FoB basis.

However market sources reported to SteelMint ,that  currently Indian mills are eyeing for HRC export offers around USD 600-605/MT on FoB basis.As Indian steelmakers have already raised the prices in domestic market by around INR 1500-2000/MT and may be hesitant to quote lesser offers for export amid high domestic realization.

Major mills in China have rolled over HRC export offers this week-Major mills in China have rolled over the HRC export offers in the start of CY 18 owing to weakening domestic market.Benxi iron and Steel and Rizhao steel have rolled over the export offers and are heard around USD 585/MT FoB China.

Currently HRC commercial grade ASTM A36 export offers are prevailing in the range of USD 575-585/MT,FoB China.Payment are made on letter of credit basis for 1,000-10,000 MT.

Prices of HRC in domestic market declined by RMB 10/MT D-o-D basis and are hovering in the range of RMB 4,280-4,300/MT (Eastern China) and RMB 4,140-4,170 (Northern China) including VAT & other taxes.

Bearish sentiments and weak buying has pushed the Chinese mills to provide discount to overseas buyers.

No fresh offers heard from Japanese and South Korean mills – No recent supplies from Japanese mills were heard. Offers have been put on hold due to very vibrant domestic demand in Japan and export allocations have been squeezed.

Last HRC export offers from Japan heard at USD 585-590/MT FoB for SE Asia. Feb/Mar shipments havent yet been offered as still waiting for allocation, shared a market participant.

Also no firm HRC export offers from South Korea were assessed this week.

Vietnam HRC Import offers remained stable-This week Vietnam HRC import offers for re rolling grade from China remain unchanged in the year end amid dull demand and weak purchases.

Current offers for HRC re rolling grade (SAE 1006 ) are heard around USD 565-575/MT CFR Vietnam.Major mills like Baosteel, Wuhan steel and Anshan steel are offering HRC to Vietnam are at USD 570-575/MT CFR basis.

Although demand for imported HRC will soon become active from second week of January post year end holidays since the inventories among end users have started reducing.

Global Flat Steel Export Offers-Week 1, 2018

Source SteelMint Research
*including VAT