Weekly: Global HRC and CRC market overview

Chinese HRC export offers to strengthen further on higher iron ore prices

Chinese HRC export offers moved up slightly by USD 5/MT following an uptrend in iron ore prices.

— COVID-19 has been impacting the iron ore supplies of Brazilian Vale, which, in turn, resulted in the suspension of operations of few mines at Itabira complex. Thus supply constraints may push prices and the increase shall be reflected in HRC prices in the near term.

— The current week offer stands at USD 435-440/MT FoB China as compared with USD 430-435/ MT a week ago.

— Meanwhile, domestic prices also gained by RMB 40-50/ MT on a daily basis and stood RMB 3,650-3,670/ MT (Eastern China). Domestic prices reported increase amid strong futures and improved demand in downstream sectors.

Pakistan mills resume HRC import bookings

Few importers based in Pakistan have actively booked materials from major exporting nations which are as follows:

Deals heard last week:

1. International Steel Limited (ISL) has booked 30,000 MT HRC from Japan at USD 420/MT CFR basis for July shipment.

2. Another deal involving 10,000 MT of HRC was booked from South Korea’s POSCO at USD 438/ MT to be delivered in mid-Aug.

Vietnam: Formosa may increase HRC offers for Aug shipments

Domestic steelmaker Formosa Ha Tinh (FHS) is planning to raise its HRC offers by around USD 10-15/MT for Aug’20 shipments. However, an official announcement is still awaited. Meanwhile, imported HRC offers (SAE 1006, 2mm) to Vietnam moved up by USD 5/MT from major exporting nations.

— China- Benxi Steel’s offer stands at USD 460/ MT CFR basis. Last week, the offer was around USD 455/ MT CFR basis.

— China- Chunghung Steel’s offer stands at USD 440/MT CFR basis.

— Japan- JFE and Nippon steel are offering at USD 450/MT CFR basis.

–Last week, a Japan based steel maker booked around 10,000 MT of HRC to Vietnam based Namkim steel at USD 440/MT CFR basis.

— South Korea- Hyundai Steel’s offer stands at USD 450/ MT CFR basis. Last week the offer was around USD 445/ MT CFR basis.

India: HRC export offers up marginally

An increase in global HRC prices and improved buying from Southeast Asian nations and China resulted in an uptrend in the export offers by around USD 5/MT. Thus, the current offer stands at USD 435-440/MT CFR Vietnam basis.

— Last week, an Indian steel mill booked 10,000 MT of HRC at USD 432-435/MT CFR Vietnam for Jul end-early Aug’20 shipments.

UAE: Importers increase inquiries on HRC offers for Aug shipments

SteelMint in conversation with reliable market participants in UAE learned that importers have started making inquiries about HRC (SAE 1006,1.8-2mm) offers from major exporting nations.

— Indian steel mills are offering USD 420-430/ MT CFR basis.

— South Korea – POSCO’s offer stands at USD 425/ MT CFR basis.

— Japan – Nippon Steel is offering USD 420-430/ MT CFR basis.

— China – offer stands at USD 460-465/MT CFR basis.

CIS: HRC exports offer stable

–On the wake of low demand from major importing nations, the CIS origin offers have remained stable on the week.

The export offer continues to hover at USD 365-375/ MT FoB Black Sea.

Source: SteelMint Research