Japanese HRC export offers likely remain on higher side in the coming term. Currently Japan HRC export offers are in the range of USD 535-540/MT FoB Japan.
As per market sources, Japanese steelmaker Nippon Steel and Sumitomo Metal Corporation (NSSMC) remained world’s 3rd largest steel producing company in 2015 with steel production of 46.37 MnT has planned to shut down its operations for maintenance in the month of March for 20 days.
Besides this, many other steel producers in Japan are planning to conduct the maintenance shut down in the month of March. Hence this will create demand supply mismatch that may prevent decline in export offers of HRC from Japan.
Chinese HRC Export Offers Decline on Weakening Domestic Market
Chinese HRC export offers decline by USD 5/MT, W-o-W owing to weaker sentiments prevailing in the China’s domestic market. Trading activities remained lean on account of robust competition with Indian export offers.
Currently HRC export offers from China are hovering in the range of USD 510-515/MT,FoB China. However last week the offers were prevailing in the range of USD 515-520/MT, FoB,basis.
Meanwhile prices of HRC in the domestic market are heard in the range of RMB 3,700-3,740/MT which is equivalent to USD 539-541/MT.
Amid volatility of prices in the Chinese export market, overseas buyers like Vietnam and South East Asian countries are eyeing on the Indian export offers as it is comparatively lower than HRC export offers from China.
Moreover, Chinese manufacturers are reluctant to accept the bids below their standard prices and have adopted wait and watch approach over uncertainty coupled with bearish sentiments spread in the global and domestic market.
Indian HRC export offers move down
Indian export offers are registered in the range of USD 490-495/MT,FoB India, Whereas on previous week the same was assessed in the range of USD 500-505/MT on FoB basis.
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