Indian HRC Positioned Cargo Deal Drives Price Down

In a recent conversation with trade participants, SteelMint learned that deal for positioned cargo of around 20,000-30,000 MT Indian origin HRC (SAE 1006) has been concluded via trader to Vietnam at around USD 410/MT CFR Vietnam for Nov shipment.

Last week the offers for position cargoes of HRC were around USD 418/MT CFR basis. Thus offers declined by USD 8/MT W-o-W basis.

Thus traders are offering back to back cargoes to Vietnam owing to bearish market outlook in the domestic market.

Meanwhile, major Indian steel mills are aiming HRC export offers to Middle-East at USD 430-440/MT CFR basis. However, no bookings confirmed yet.

Chinese HRC export offers continue to fall further- This week, Chinese HRC export offers witnessed further fall owing to cheaper offers from other exporting nations. Also, thin trades in the overseas markets over ample supply from India and Russia forced Chinese steelmakers to cut their offers in the export market.

Few market participants shared that, “It’s difficult for Chinese steel mills to export in the current scenario when prices are falling tremendously in the global market.”

Hence, on a weekly basis nation’s HRC export offers stand at USD 425-430/MT FoB China decline by around USD 20/MT as compared to USD 450/MT FoB basis in the preceding week.

Also, prices in the domestic market for HRC remain stable D-o-D basis and are hovering at RMB 3,500-,3510/MT (Eastern China) and RMB 3480/MT in (Northern China).

Thus, moderate trading continues to prevail in the domestic market. However, ahead of winter season scheduled from Nov to Feb in China may result in price cuts in the domestic market.

Imported HRC offers to Vietnam remain range-bound- Offers for imported HRC from India and Russia remain largely stable on a weekly basis. Buyers are preferring to purchase domestically over high discounts from Formosa on earlier payment. Thus, buyers in Vietnam shared to procure domestic is much convenient over imports.

Current HRC offers to Vietnam

1. HRC (SAE 1006) 2-3mm/ Chinese offers- Rizhao steel is offering at USD 425/MT CFR Vietnam, down by USD 5/MT from USD 430/MT in the previous week.

2. HRC (SAE 1006) 2mm/ Russian offer- MMK steel is offering big coils at USD 408/MT CFR basis as against USD 410/MT CFR basis in the previous week.

3. HRC (SAE 1006) 2mm/ Japanese offer- Nippon Steel is offering at USD 430 /MT CFR Vietnam, stable over the previous week.

4. Formosa HRC (SAE 1006, skin pass) is priced at USD 460/MT CIF basis over USD 480/MT CIF basis a month ago. However, offers for non-skin pass stood at USD 455/MT CIF basis as against USD 475/MT CIF basis in the previous month.

CIS export market continues to remain depressed over tepid demand- This week, HRC export offers from CIS-nations declined further by around USD 5-10/MT.

Currently, HRC export offers stand at USD 375-385/MT FoB basis, which was USD 380-395/MT in the previous week.

Dull demand in the nation’s major exporting nation, Turkey resulted in a significant decline in CIS export offers on a weekly basis. Thus CIS steelmakers are shifting their surplus to South East Asian markets like Vietnam.

Source: SteelMint Research