SteelMint’s Indian HRC (SAE 1006) export index stands at $1,057/tonne (t) FoB east-coast basis, up $19/t week-on-week (w-o-w) against $1,038/t FoB seen in the last week. Indian mills have sharply raised HRC export offers to $1,100/t CFR this week against $1,070-1,080/t CFR last week.
“Indian mills are currently maintaining offers at higher levels and observing the market trends. However, after a fall in Chinese futures, buyers are showing resistance at these levels,” a trade source informed SteelMint.
Rationale- Twelve indicative prices were considered as T2 inputs. The final price was an average of T2 inputs which stood at $1,057/t FoB. The CFR prices were converted to FoB equivalent by deducting freight costs from the buyer/seller.
Global HRC market overview
1. Chinese HRC export offers up slightly- This week, Chinese HRC export offers stood at $1,060-1,070/t FoB against $1,050-1,060/t CFR.
The Tangshan government recently announced a fresh round of production restrictions, ordering sintering mills to suspend operations for the first 10 hours starting from midnight of 18 May’21 till 20 May’21, in a bid to reduce air pollution.
These production cuts may further boost the nation’s export offers after the steep fall in Chinese futures.
2. CIS-origin HRC export offers increase further- Offers from the CIS nations rose by over $20-35/t w-o-w to $1,055-1,075/t FoB Black Sea this week. The increase in offers is the result of the continuous uptrend in global HRC offers amid supply disruptions and improved demand in the importing countries. Last week, the offers were heard at around $1,020-1,055/t FoB.
3. Imported HRCs offers to Vietnam continue to rise- Gaining support from the increased downstream industrial demand, imported HRC demand continues to remain strong. Thus, major exporting countries have increased their offers by around $20-30/t.
Offers
a.) Chinese mills are offering at $1,080-1,090/t CFR Vietnam as against $1,060-1,080/t CFR seen a week ago.
b.) Indian steel mills are targeting $1,100/t CFR. Last week, offers were at around $1,070-1,080/t CFR.
Also, Vietnam’s major steelmakers, Formosa and Hoa Phat increased their offers by $120/t for July and early August contracts.
4. Imported HRC offers to Pakistan increase sharply- Major Chinese steel manufacturers are offering HRCs to Pakistan at around $1,100/t CFR. The previous week offers stood at $1,050-1,070/t CFR. Meanwhile, offers from South Korean mills are expected to be announced soon.
5. Imported HRC offers to Nepal rise- A major Indian steel mill based in eastern India is offering HRC to Nepal at $970-980/t ex-plant. This is equivalent to around $1,000/t CFR Raxaul border. However, no major deals have been reported yet. A couple of days back offers stood at around $930/t ex-plant or $950/t CFR Raxaul border.
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