Weekly: Global HRC and CRC Market Overview

Chinese HRC export offers fall further-

— The nation’s HRC export offers plunged by around USD 20-30/MT W-o-W on the back of increased HRC export rebates to 13% from 10 % announced last week.

— Thus, currently, the HRC export offer stands at USD 435-440/MT FoB China which was USD 455-470/MT in the preceding week. Major steel mills are offering HRC at USD 440/MT FoB China.

–Decline in HRC offers failed to push buying among buyers abroad amid lock-down and transportation problems in various nations.

— Meanwhile, domestic prices reduced by RMB 10- 20/MT on a D-o-D basis to RMB 3,360-3,380/MT (Eastern China). Thus lock-down in various countries to curb the spread of virus has hit the global economy and in turn, resulted to fall in the future market and a decline in domestic prices.

Imported HRC offers to UAE-

–HRC export offers from India fell by around USD 20/MT this week. The market conditions are not great both in the UAE and India amid rising concerns of the corona-virus pandemic taking its toll on the global market.

–Indian mills were heard to have been offering HRC at USD 460/MT CFR UAE. However, no deals were heard to have concluded yet.

India: Traders short-selling lower offers further
Indian traders lowered HRC offers further by USD 10- 15/MT on the back of depreciating INR against USD.

— Thus, traders are short-selling Indian HRC cargoes and are offering at USD 430-435/MT CFR Vietnam as compared to the previous offer of USD 440-450/MT last week.

— There was the market chatter that Indian steel booked some quantity at USD 430-435/MT CFR basis for April may shipments but it couldn’t be confirmed while publishing this article.

— Other major Indian mill participant shared with SteelMint that they are open to book but currently no deals concluded yet.

Imported HRC offers to Vietnam-
Market sources shared with SteelMint that, there has been an increase in infection cases in Vietnam, and some places have already been locked down. Thus sentiments remained quite pessimistic this week.

— HRC (SAE 1006, 2mm), China- Rizhao steel is offering at USD 450-455/MT CFR basis.

— HRC (SS400), China- Anfeng steel offering at USD 450/MT CFR basis.

— HRC (SAE 1006, 2mm), South Korea- Hyundai Steel is offering at USD 460-465/MT CFR basis.

— HRC (SAE 1006, 2mm), Japan- Nippon Steel is offering at USD 465/MT CFR basis, stable against the offer at the end of the previous week.

— HRC (SAE 1006, 2mm), Japan- JFE is offering at USD 465/MT CFR basis, stable against the offer at the end of the previous week.

— HRC (SAE 1006, 2mm, small coil) Ukraine- Metinvest is offering at USD 425-430/MT CFR basis. Last week the offers were in the range of 440/MT CFR basis.

— Formosa Ha Tinh is offering HRC (SAE 1006, skin pass) at around USD 480/MT CFR basis slashed by USD 40/MT for May shipments.

CIS origin HRC export offer declines further on meek buying interest-
— The HRC export offer slashed by USD 20-25/MT on the back of uncertainty in the global market with the increasing concerns over coronavirus.

–The demand continued to remain bearish as importers are not booking actively amid massive lockdown. This resulted in meek buying and thus weighed on the export offers.

— The current assessment for CIS origin HRC export offer is at USD 435-445/MT FoB Black Sea as compared to USD 455-460/MT in the previous week.

Source: SteelMint Research