SteelMint’s weekly HRC (SAE 1006) FoB India price index increased by $18/t at $530/t FoB India. Last week the FoB India price index stood at a $512/t FoB basis.
Last week Indian steel mills booked over 70,000 t HRC for Vietnam, UAE & Europe at around $535-545/t CFR basis for Oct shipments. However, since these deals were not concluded in this publishing window, they haven’t been considered under T1 (confirmed trades).
A total of eight offers and indicative prices were considered as T2 inputs, with the average price of $530/t. The final price was an average of T2 inputs. The CFR prices were converted to FoB equivalent by deducting freight costs from the buyer/seller.
What is SteelMint HRC FoB Index- SteelMint publishes prices of HRC cargoes exported from major Indian ports on an FoB basis. Major Indian producers of HRC are JSW Steel, Tata Steel, and AM/NS India, with cargoes being shipped from the east and west coasts.
Market overview – Major exporting nations– China, Japan, South Korea, and India have raised HRC offers further by around $10-20/t w-o-w.
Also, Indian steel mills further raised domestic HRC prices sharply by INR 2,000-2,500/t for Sept’20 on higher production costs. Few mills are likely to undergo maintenance shutdown which may keep supplies tight in the near term. This resulted in an increase in the nation’s HRC export offers.
China HRC export offers continue to increase-
The Chinese steel mills continue to increase HRC offers by $5-10/t on higher production costs and robust demand in the domestic market.
In the current week export offer stands at $525-530/t FoB China as against the previous week’s offer of a $520-525/t FoB basis.
Meanwhile, domestic HRC prices were in the range of RMB 3,980-4,020/t (Eastern China). Prices inclusive of 13 VAT. Also, the recent production cut announcement failed to impact domestic market sentiments.
Japanese and Korean mills raise HRC export offers to Vietnam
The increased reliance of the Vietnamese importers on the imported HRC in the past couple of weeks has further pushed the offers up by $10-15/t from major exporting nations.
Japanese and South Korean mills are offering at $550-560/t CFR basis up from $540/t CFR basis last week.
Meanwhile, Chinese steel mills have also raised their imported HRC offers sharply by $15/t and current offers are at $550/t CFR basis against the previous week’s offer of $535/t CFR basis.
Vietnam’s Formosa likely to increase HRC prices for Nov- sources
Vietnam’s integrated steel manufacturer Formosa Ha Tinh is planning to announce a steep increase in its HRC prices for Nov delivery shipments, SteelMint learned from reliable trade sources. The anticipated hike will be around $30-40/t. Last offers for HRC (skin pass) were in the range of $505-510/t CIF basis for Oct deliveries.
CIS origin export offers up by $15/t on the week- The HRC export offers from the CIS nations went up by $15/t this week on decent demand from the importing nations. Current week export offers to stand at $492-505/t FoB Black Sea in contrast with $480-490/t FoB basis a week back.
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