China HRC export offer move up post festive holidays-
Nation’s steel manufacturers increased their HRC export offers by $5/t post the Dragon Boat Festival. Current offer stands at $445-450/t FoB China, as against $440-445/t FoB basis at the end of the previous week.
On the other hand, domestic HRC prices declined by RMB 10-20 d-o-d basis to 3,710-3,730/t (Eastern China) on weakening market sentiments since 26 regions in China had been impacted by the flood in the previous weekend, and a forecast of heavy rains to persist over the next few days.
Further, the local government of Tangshan province has ordered the suspension of blast furnaces and sintering equipment from 1 Jul’20 until 30 Sept’20 to check the air pollution.
Indian HRC export offer remains firm –
Indian steel manufacturers have kept their offers at a higher range on the back of decent bookings in the recent past and improving global HRC export offers.
The current week offers for HRC (SAE 1006, 2 mm) stand at $ 445-450/t CFR Vietnam basis, while that for HRC (SS 400) at $455-457/t CFR basis.
Also, the offers for positioned cargoes are at $438/t CFR Vietnam basis.
Imported HRC offers to Vietnam remain stable on the week-
The offers from major importing nations have remained unchanged over the week due to:
* Limited buying interest amid ongoing negotiations with domestic producer Formosa.
* Sufficient inventories due to decent import bookings in the recent past.
* Monsoon rains to impact the demand in the nation.
Pakistan’s imported HRC remains dull on limited inquiries-
The demand for the HRC in the nation was weak as the importers held sufficient inventories in hand. Few of them have already concluded deals in the past few weeks and are booked until Aug’20, SteelMint learnt from Pakistani sources.
However, Karachi and Lahore city are in lockdown until 2 Jul’20.
Imported HRC offers to Pakistan
* Taiwan- The offer stands at $450/t CFR basis.
*South Korean and Japanese steel manufacturers are offering at $455/t CFR basis.
UAE’s imported HRC market dull amid high offers-
Demand in the Middle East is also weak at the moment. There is a significant gap between the bids and offers, which has kept the UAE importers at sidelines.
Indian mills are offering HRC at $440-450/t CFR basis, while the importers are bidding at $430/t CFR basis.
However, offers from China are around $ 460-470/t CFR basis.
CIS origin HRC export offer stable over the week-
The export offers from CIS nations continue to hover at $405-415/t FoB Black Sea, unchanged over against the previous week offers.
In the previous week, the offers had increased amid improving demand and higher production costs.
Source: SteelMint Research
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