Indian Steel Manufacturers Resume HRC Export Offers to Vietnam

After remaining silent since past few days, Indian mills have resumed HRC offers to Vietnam. Major mills in India have raised HRC export offers for Vietnam by about USD 20/MT for March deliveries.

Market participants reported that few major mills are quoting HRC export offers around USD 630/MT CFR Vietnam. However Bhushan Steel has quoted the offers on lower side which stood at USD 615/MT CFR basis. However this will be equivalent to USD 600-615/MT on FoB basis.Although no major deals have been concluded yet.

Indian steel mills were not seen quoting offers to Vietnam and they were seen offering material for Europe. Previous assessment stands at USD 600-610/MT, CFR Vietnam basis.

Vietnamese buyers have started restocking the inventory ahead of festive holidays and they are mostly preferring HRC from China as it remained cost effective.Also buyers are keen interested in purchasing HRC from local mill like Formosa over prompt delivery and cheaper prices than imported offers .This resulted to limited trading of HRC from India.

Chinese HRC export offers decline marginally- Chinese HRC export offers decline marginally amid subdued buying in domestic market.Owing to this major mills in China have kept themselves away form quoting any fresh HRC export offers for this week.

Currently HRC commercial grade ASTM A36 export offers are prevailing in the range of USD 575-580/MT,FoB China.However as per previous assessment last offers was in range of USD 580-590/MT,FoB basis.Payment are made on letter of credit basis for 1,000-10,000 MT.

Prices of HRC in domestic market went by RMB 10/MT D-o-D basis and are hovering in the range of RMB 4,090-4,130/MT (Eastern China) and RMB 3,940-3,970/MT (Northern China) including VAT & other taxes.

Also,Chinese new year holiday is scheduled in the month of February and steel mills will remain closed for one week which in turn affects the HRC export offers in near term.

CIS nations flat steel market remained quiet over tight supply– CIS-nations remained inactive and mute regarding fresh offers of HRC since mills are running out of inventories for march deliveries.

Currently HRC export offers from CIS nations are prevailing in the range of USD 575-595/MT,FoB Black Sea

Japanese & Korean  Mills have kept HRC export offers unaltered-Japanese & Korean based mills have kept the HRC export offers stable and focusing much on domestic market.

As per previous assessment HRC export offers were gauged at USD 640-650/MT on CFR basis.

Global Flat Steel Export Offers-Week 5, 2018

Source SteelMint Research
*including VAT