Global HRC & CRC Market Overview

Chinese HRC export offers fall on accumulated inventories- Chinese HRC export offers softened by USD 10-20/MT this week on the back of an increase in inventory levels amid a slowdown in domestic demand. The current HRC export offers are being heard at USD 460-480/MT FoB China on a weekly premise in contrast with USD 480-490/MT FoB basis in the previous week.

Meanwhile, a decline in the number of new infection cases led to an increase in the rate of the resumption of market participants. However, local sales remained sluggish. Domestic HRC prices inched up by RMB 10/MT on a D-o-D basis at RMB 3,470-3,490/MT (Eastern China).

Imported HRC offers to Vietnam decline further- The Chinese steel mills further reduced imported HRC offers to Vietnam by USD 5-15/MT following a decline in the nation's export offers.

Current imported HRC offers to Vietnam-

1. HRC (SAE 1006) 2mm, China- Benxi is offering at USD 470/MT CFR basis. Yesterday's offer was USD 475/MT CFR basis.

2. HRC (SAE 1006) 2mm, China- Baosteel offer is at USD 475/MT CFR basis. Yesterday the offer was at USD 480/MT CFR basis.

3. Towards the end of last week China-based major steelmaker, Baosteel had booked 20,000 MT HRC (SAE 1006) with Vietnam for March deliveries.

4.HRC (SS400), China- Shagang Steel's offer is at USD 465/MT CFR basis.

5. HRC (SAE 1006) 2mm, China- Chunghung Steel's offer is at USD 485/MT CFR basis. The previous offer was at USD 500/MT CFR basis.

6. HRC (SAE 1006) 2mm, Japan- Nippon Steel is offering at USD 500/MT CFR basis.

7. Vietnamese domestic integrated steel manufacturer Formosa Ha Tinh kept its HRC (skin pass, SAE1006) prices unchanged at USD 520/MT for Apr'20 deliveries.

Indian mills remain less active for export bookings- Major Indian steel manufacturers are not actively offering HRC for exports. The current indicative price for Indian HRC export offers stands at USD 510-520/MT CFR Vietnam. However, no major deals have been concluded yet. Few market sources shared that Indian steel mills are less interested to export HRC as they have shifted focus to domestic sales.

Pakistan mill booked 10,000 MT HRC from South Korea- In a recent conversation with market sources, SteelMint learned that a major steel mill based in Pakistan booked 10,000 MT of HRC (SAE 1006) for imports from South Korea towards the end of the previous week. The deal price was heard at USD 515/MT CFR Pakistan for Mar'20 shipment.

Imported HRC offers to UAE from China fall- This week imported HRC offers to UAE softened by USD 10-20/MT W-o-W basis from China. The buyers in UAE are less interested to make any fresh bookings amid expectations of a further decline in offers from China. Currently, Chinese mills are offering HRC for export at USD 485-500/MT CFR basis in contrast with the offers at USD 510-515/MT CFR basis last week. Meanwhile, Indian origin HRC export offers to the UAE were heard at USD 510/MT CFR basis.

CIS origin HRC export offer declines amid bearish importers- CIS origin HRC export offers declined by USD 5-10/MT W-o-W basis. The nation's HRC export offers are falling in line with the downtrend in scrap prices in Turkey, which is considered as the major importing nation to Russia.

Thus, importers are expecting further fall in HRC export offers from CIS nations to push buying. Currently, the HRC export offer stands at USD 460-480/MT FOB Black Sea as compared with USD 470-485/MT FoB basis a week ago.

Source: SteelMint Research