Global HRC & CRC Market Overview– Week 4, 2020

Indian steel mills further raise HRC export offers over limited allocation– Major Indian steel mills have been eyeing for USD 550/MT CFR Vietnam basis for the April shipments.

However, market sources shared that mills are already overbooked for March shipments and have very limited allocations for exports to overseas markets.

Prior this, the last offers were hovering at USD 535-540/MT CFR basis for Feb March shipments.

Thus supply constraints and restocking demand in the domestic market pushed HRC export offers on the higher side.

However, export trades will remain inactive owing to the New Year holidays in China and Vietnam.

Indian mills raise HRC export offers to Nepal in recent bookings- Last week, two major Indian steel manufacturers have collectively booked 3 rakes of HRC for exports to Nepal at USD 540/MT CFR Raxaul border for Mar’20 deliveries.

Previous bookings were made at USD 530-535/MT CFR basis at the beginning of the month.

However, market sources shared that Indian HRC export offers will be around INR 550/MT CFR basis for Mar-Apr shipments.

Chinese HRC exports offer stable ahead of the Lunar New Year holidays – Nation’s HRC export offers remained largely stable over the preceding week as most of the mills are suspending their market activities with the week-long New Year holidays.

The current HRC export offer stands at USD 500-505/MT, unchanged over the previous week offers.

The domestic HRC prices continued to hover at RMB 3,860-3,880/MT (Eastern China), unchanged on a day-on-day basis as the market remained quiet since many of them have started with their holiday break.

Imported HRC offers in Vietnam remain unchanged on Tet holidays- Importers based in Vietnam are suspending their activities ahead of the Tet holidays starting 24th Jan’20, resulted in mute in trade activities this week.

Current Imported HRC offers to Vietnam-

1. HRC (SAE 1006) 2mm, China- Rizhao Steel’s offer stable at USD 517- 520/MT CFR basis

2. HRC (SAE 1006) 2mm, China- Benxi is offering at USD 520-525/MT CFR basis, unchanged over the previous week.

3. HRC (SAE 1006) 2mm, South Korea- Hyundai Steel’s offers continue to hover at USD 520-530/MT CFR basis.

CIS-origin HRC export offer stands unchanged amid low supplies- This week, CIS-origin HRC export offers remain poised at USD 475-490/MT FoB Black Sea as against the previous week offers.

As per market reports, the Magnitogorsk Iron and Steel Works (MMK), one of the world’s largest and leading Russian steel manufacturers to undergo maintenance shutdown in March, has shifted focus to the domestic market and lowered allocations to the overseas market. The company’s one of the two 2,500 mm wide hot strip mills at the Ural site shall undergo a maintenance shutdown for 110 days in March.

Source: SteelMint Research