Indian Importers Book 50,000 MT HRC from Japan

SteelMint learned from market sources that Indian steel mills have booked around 50,000 MT of HRC (1.6-1.8 mm) from Japan in the range of USD 640-645/MT CFR basis for August shipments.

Further they added, that owing to limited availability of thinner gauge HRC in domestic market, India mills prefer to choose imports over domestic HRC.

Prior to this, Indian steelmakers has concluded a deal of 20,000 MT of HRC with Japan at around USD 645/MT CFR India for July shipments.

Vietnam – Imported HRC offers from China Decline Further
Imported HRC offers decline further by USD 5/MT amid declining domestic prices over fluctuating futures in China.

Meanwhile end users in Vietnam are preferring domestic HRC over imported material amid faster delivery.However competitive pricing from major exporting nations like Russia and India also contributes in declining imported HRC offers from China.

Current HRC Trade offers to Vietnam
1.HRC (SAE 1006) 2-3mm / Chinese offer – Benxi Iron & Steel mill at USD 610/MT,CFR Vietnam.In the beginning of the week offers was at USD 615/MT CFR basis.

2. HRC (SAE 1006) 2-3mm / Chinese offer – Rizhao Steel at USD 605/MT CFR Vietnam. In the beginning of the week the offers were at USD 610/MT CFR basis.

3.HRC (SAE 1006) 2-3mm /Russian offer- MMK Steel at USD 595/MT CFR Vietnam.In the beginning of the week the offers were at USD 605/MT CFR basis.

5.HRC (SAE 1006) 2-3mm /Indian offer- Offers at USD 615/MT CFR Vietnam.

Chinese HRC domestic prices fall, export offers remain firm- Chinese HRC export offers remain steady on weekly basis however market observed weakening sentiments in domestic market.

Domestic prices in China witness downtrend amid falling futures which has kept export offers of HRC stable. Currently Chinese HRC export offers heard around USD 595-600/MT,FoB China. Payment are made on letter of credit basis for 1,000-10,000 MT.

Also as per reports,China’s currency Yuan (RMB) has depreciated by 3% in last nine days amid imposition of tariffs by USA government on Chinese exports. Although this may help to offset slow trading of exports from extended trade war between USA and China.

Prices of HRC in the domestic market are gauged at RMB 4,230-4,240/MT (ex-works) in Eastern China and 4,120-4,140 /MT ( Northern China).

However dull buying and sluggish demand continues to prevail in the domestic market.

CIS origin HRC export offers rise over limited supply- CIS origin HRC export offers moved up by USD 5-10/MT on weekly basis amid limited supply of material in domestic market.

Exporters have already stopped taking bookings for July shipments.Thus,major mills in Russia will release their fresh offers in the month of July.

Currently HRC (2.5 mm S235 JR) export offers are heard around USD 565-575/MT FoB Black sea.However last week the prices stood in the range of USD 550-565/MT FoB basis.

However Ukraine is offering HRC to Turkey around USD 560/MT FoB Black Sea.

Global Flat Steel Export Offers – Week 25,2018

Source- SteelMint Research