Indian HRC Export Market Remains Active in Recent Deals

Indian HRC export market continues to remain active with recent deals being concluded to Vietnam, Europe, and the UAE.

As per an update received, a steel manufacturer based in eastern India concluded an export deal of 10,000 MT of HRC to UAE at USD 510/MT CFR basis for Jan-end-Feb deliveries. Meanwhile, another western region based steel mill has booked 15,000-20,000 MT of HRC for exports to UAE at USD 515/MT, CFR for Feb deliveries.

Also, another cargo of around 15,000 MT of HRC booked to Europe by major steelmaker based in eastern India at around USD 510/MT CFR basis for Feb deliveries.

In line with this, the same company booked 15,000 MT HRC for exports to Vietnam at USD 495-500/MT CFR basis for Jan-end-Feb deliveries.

Chinese HRC export offers move up- This week Chinese HRC export offers picked up further by USD 5/MT on the back of short supplies amid transportation restrictions and production curbs prevailing in the nation's domestic market.

Also, improved margins in the domestic market propelled Chinese steelmakers to push prices in the export market.

Thus, current HRC export offers stand at USD 485-490/MT FoB China, which was USD 480-485/MT FoB basis a week ago.

Meanwhile, prices in the domestic market stood around RMB 3,900-3,910/MT up by RMB 30/MT yesterday in Eastern China. However, the prices remain unchanged today.

Imported HRC offers to Vietnam increases from major exporting nations- This week imported HRC offers to Vietnam moved up by USD 10/MT from major exporting nations as against the previous week.

Increased appetite for imports from India and China in anticipation of short supply owing to a planned shutdown in domestic integrated steel mill Formosa Ha Tinh for 20 days starting from 30th Dec'19 to17th Jan'19, may result in an increase in HRC offers in the near term.

1. HRC (SAE 1006) 2mm, China- Rizhao Steel's offer increased to USD 500/MT CFR basis, which was USD 490/MT CFR basis a week ago.

2. HRC (SAE 1006) 2mm, South Korea- Hyundai Steel's offer stands at USD 500/MT CFR basis. Previous week offers stood at USD 485-490/MT CFR basis.

3. HRC (SAE 1006) 2mm, Japan- Nippon Steel is offering at USD 500/MT CFR basis. Last week's offers were USD 490/MT CFR basis.

4.HRC (SAE 1006) 2mm, India- Indian mills are offering at USD 500/MT CFR basis.

5. Vietnam's domestic steelmaker Formosa Ha Tinh is offering HRC (SAE 1006, skin pass) at around USD 485/MT CIF basis for Feb deliveries.

CIS origin HRC export offers uptick ahead of holidays- This week, the CIS origin HRC export offer moved up marginally by USD 5/MT on a weekly premise ahead of the week-long new year holidays.

Currently, CIS-origin HRC export offers stand at USD 460-475/MT FoB Black Sea as compared with USD 460-470/MT FoB basis in the previous week.

Source: SteelMint Research