Global HRC Market Overview - Week 5, 2019

Chinese HRC export offers unmoved - Chinese HRC exports offers have remained unchanged this week as few major mills are not offering in the market ahead Lunar New year holidays scheduled 4-10th Feb'19.Limited trades reported as most of the industry participants are in the holiday mood. Currently nation's HRC export offers are assessed at around USD 485-495/MT FoB basis.

Meanwhile prices in eastern China (Shanghai) decline by RMB 20/MT on D-o-D basis and are hovering at RMB 3,740-3,750/MT.However prices in Tangshan remain stable and are heard at RMB 3,690-3,710/MT. Ex-factory including 17% taxes.

Absence of HRC offers to Vietnam amid festive holidays: This week imported HRC offers to Vietnam remained inactive ahead of week-long Lunar New Year holidays scheduled in China in first week of February.

Meanwhile Vietnam New Year Tet holidays is also scheduled in similar dates resulting in mute buying.Thus market sources shared that Chinese steelmakers have stopped offering HRC to Vietnam based importers this week since steelmakers are on holidays and issuing Letter of credit can turn out to be a major concern.

Last offers for imported HRC to Vietnam from Chinese mills was in the range of USD 495-515/MT CFR basis. However no active HRC offers were heard from major Chinese mills.

CIS-origin HRC export offers remain unchanged this week- CIS origin HRC export offers remain stable this week as the market remain quiet and dull amid weak buying.However CIS nations steelmakers are expecting surge in prices for March shipments.

Currently CIS nations HRC export offers are hovering around USD 445-465/MT FoB basis.Last week the offers was in range of USD 440-460/MT FoB Black Sea.

Indian mills raises HRC export offers for Vietnam-Indian steel mills have raised the offers for Vietnam by USD 10-20/MT and is offering at USD 510/MT CFR basis.However no major bookings has been reported.Last week the offers were in range of USD 495-500/MT CFR basis.

Meanwhile Indian steelmaker also concluded 3 rakes of HRC with thickness ranging from 1.6 mm -12 mm. As per sources, the deal price for 1.8 mm HRC is at USD 490/MT FCA which is coming around USD 510-515/MT CFR Raxaul border. Freight is around USD 20/MT.

Global HRC Market Overview - Week 5,2019

Source- SteelMint Research