Global HRC & CRC Market Overview- Week 38, 2019

Chinese HRC export offers remain firm over moderate demand- Chinese steel mills held their HRC export offers firm this week amid beginning of restocking activities ahead of the Golden-Week holidays starting from 1st Oct'19.

Currently nation's HRC export price assessment is at USD 460-465/MT FoB unchanged against previous week.

Thus, Chinese steelmakers have increased domestic prices by RMB 10-30/MT on D-o-D basis and stood at RMB 3,710-3,720/MT. Meanwhile, prices in northern region also moved up by RMB 20/MT on D-o-D basis at RMB 3,620-3,630/MT. Prices mentioned above are inclusive of 13% VAT.

Indian steel mills shifted their interest to exports over slump in domestic market- Indian steelmakers have significantly reduced their HRC export offers and are aggressively exporting HRC to Vietnam over higher inventory levels present in domestic market.

Currently, Indian steel mills are offering HRC exports to Vietnam at around USD 455-460/MT CFR basis which translate into USD 440-445/MT FoB India for Oct shipments.

Last week SteelMint reported that major Indian steelmakers had booked around 1,00,000 MT of HRC with Vietnam at around USD 455-460/MT CFR Vietnam for Oct deliveries.

Lower HRC offers from India weighs on Vietnam's Formosa HRC prices- Cheaper HRC cargoes from India weighs on Vietnam based Formosa's HRC prices for Nov shipments.

Last week company officials slashed HRC (SAE 1006 skin pass) offers by USD 51/MT and stood around USD 480/MT CIF Ho Chi Minh for Nov shipments. In the previous month offer was around USD 531/MT CIF basis for Oct deliveries.

However imported HRC offers to Vietnam remain firm this week amid stability in offers from major exporting nations like China and India. However buyers in Vietnam continue to bid on lower side.

Current imported HRC offer to Vietnam

1. HRC (SAE 1006) 2-3mm/ Chinese offer- Benxi Steel is at USD 460-465/MT CFR Vietnam.

2. HRC (SAE 1006) 2mm/ Korean offer- Hyundai is offering at USD 475/MT CFR Vietnam.

3. HRC (SAE 1006) 2mm/ Japanese offer- Nippon is offering at USD 475/MT CFR Vietnam.

4. HRC (SAE 1006) 2mm/ Russian offer- MMK steel is offering at USD 465/MT CFR Vietnam.

5. HRC (SAE 1006) 2mm/ Indian offer- Indian steel offering at USD 457/MT CFR basis.

CIS- origin HRC export offers move down further - This week CIS nation's HRC export offers witness marginal decline by around USD 6/MT and is hovering around USD 420-435/MT FoB basis which was USD 430-438/MT FoB Black sea last week.

Global HRC & CRC market overview- Week 38, 2019

Source: SteelMint Research