Global HRC & CRC Market Overview - Week 47, 2019

Indian HRC export offers to Vietnam increase further amid active buying- In the beginning this week, Indian steel mills increased HRC export offers to Vietnam by USD 10/MT for Dec-Jan deliveries.

Thus, currently, HRC export offers stand at USD 450-455/MT CFR Vietnam. However, offers are still on hold and no major bookings have been made yet.

However, few market sources shared that mills are already fully booked for Nov-end Dec shipments and are eyeing for Jan'20 bookings.

Also, buyers in Vietnam are preferring Indian origin cargoes. Thus, driving HRC export offers in an upward direction.

Indian HRC export offers to Nepal- Indian steel mills have also increased HRC export offers by USD 10/MT to Nepal Dec-end Jan shipments.

Thus, mills are eyeing for Indian HRC export offers to Nepal at USD 440/MT (ex-plant) basis, which translates into USD 460-465/MT CFR Raxual Border.

However, prior to this, Indian steel mills had collectively booked 7-8 rakes of HRC in range of USD 430-435/MT (ex-plant basis) which is around INR 450-455/MT CFR Raxual Border for Nov-end Dec deliveries.

Imported HRC offers to Vietnam moved up- Imported HRC offers to Vietnam witnessed an increase from major exporting nations on the back of improved sentiments in the global market.

Current HRC offers to Vietnam-

1. HRC (SAE 1006) 2mm, Japanese offers- Nippon steel offers stand at USD 450/MT CFR basis.

2. HRC (SAE 1006) 2mm, South Korean offers- Hyundai steel is offering at USD 450/MT CFR Basis. The offer was at USD 445/MT beginning this week.

3. HRC (SAE 1006) 2mm, Indian offer- Indian steel mills are offering at USD 450-455/MT CFR Basis. Last week the offers were around USD 440-442/MT CFR basis.

4. Vietnam domestic Formosa is offering HRC (skin pass, SAE 1006) at USD 470/MT CIF basis for Dec-Jan shipments.

Chinese HRC export offers rose over low supply- This week, Chinese HRC export offers witnessed an uptrend of USD 10-15/MT on a weekly premise amid restocking activities ahead of New Year holidays. Also tightening supplies over announced production curbs boost the sentiments in the domestic and export markets.

Thus, Chinese HRC export offers stand around USD 440-455/MT FoB China, as compared with USD 435-440/MT CFR in the preceding week.

Meanwhile, domestic HRC prices stood at RMB 3,610-3,630/MT, up by RMB 20-30/MT on a D-o-D basis in Shanghai and RMB 3570/MT up by 10/MT in Tangshan region.

CIS-origin HRC export offers moved up- CIS nation's HRC export offers increased by USD 15-20/MT W-o-W basis in the back of improved sentiments in the global market. Also, importers have started restoking activities, which fuels bullish sentiment in the export market.

Currently, HRC export offers stand at USD 390-405/MT FoB Black Sea as against USD 375-385/MT in the preceding week.

Source: SteelMint Research