Global HRC Market Overview- Week 35, 2019

Japanese steel mills resumes HRC export offers to India- SteelMint in conversation with trade sources shared that Japan based steel mill is offering 10,000 MT of HRC to India at around USD 480/MT CFR basis for September shipments.

Meanwhile as per sources, buyers are expecting around USD 460-470/MT CFR basis for Sep shipments. However the deal will be confirmed in a day or two.

Chinese HRC export offers continue to fell further following decline in domestic prices – Chinese HRC exports offers fell further following slump in domestic market owing to depreciation of Yuan against USD.

Also amid pessimistic market sentiments owing to US-China trade feud along with lower bids from overseas buyers continue to pull down nation’s HRC export offers.

Currently nation’s HRC export price assessment is at USD 470-475/MT FoB basis against USD 480-485/MT in previous week.

Meanwhile prices in Eastern China moved down by RMB 50-70/MT D-o-D basis and stood at RMB 3,600-3,630/MT. Also in northern region prices declined by around RMB 50/MT to RMB 3,600/MT. Prices mentioned above are inclusive of 13% VAT.

Also easing production cuts led to decline in nation’s domestic prices.

Indian HRC export offers to Vietnam slump further- This week Indian HRC export offers to Vietnam fell by USD 10-15/MT and is around USD 465/MT CFR Vietnam which was USD 475-480/MT CFR basis in previous week.

Also industry participants shared that a major Indian steel mill booked around 20,000 MT of HRC with Vietnam yesterday at USD 465/MT CFR basis. However the deal couldn’t confirmed at the time of publishing this report.

Imported HRC Offers to Vietnam remain downside- Imported HRC offers to Vietnam continue to show downturn following decline in export offers from China.

Meanwhile end users based in Vietnam are bidding on lower side and procuring material mostly from India over cheaper HRC offers compared to China.

Current HRC trades to Vietnam

1. HRC (SAE 1006) 2-3mm/Chinese offer- Benxi Steel is at USD 475/MT CFR Vietnam.Offers remain unchanged against previous week.

2. HRC (SAE 1006) 2-3mm/Chinese offer- Laiwu Steel is at USD 465/MT CFR Vietnam. Towards end of last week offer was at USD 470/MT CFR basis.

3. HRC (SAE 1006) 2-3mm/Russian offer– MMK Steel at USD 465/MT CFR Vietnam. Towards the end of previous week offers were around USD 468/MT CFR basis.

4. HRC (SAE 1006) 2mm/Japanese offer– Nippon Steel at USD 495/MT CFR Vietnam. Offers remained unchanged against previous week.

5. HRC (SAE 1006) 2mm/Korean offer– POSCO is offering at USD 482/MT CFR Vietnam.

Global HRC market overview- Week 35, 2019

Source: SteelMint Research