Indian Steel Mills Raise HRC Export Offers Sharply for July Shipments

Indian steel mills have raised their HRC export offers significantly by USD 20/MT this week for end July-early August shipments following a hike in Chinese futures. This also leads to a rise in Chinese HRC prices.

-- Current HRC (SAE 1106) offer stands at USD 420-425/MT CFR Vietnam against previous week offers at USD 400-405/MT CFR basis.

-- As per reports, the Shanghai Futures Exchange most-traded construction steel rebar contract rose as much as 2.6% and hot-rolled steel coil surged 5.9% today.

-- Chinese HRC prices gained momentum- Today Chinese HRC prices increased sharply by RMB 90-100/MT and stood at RMB 3,520-3,550/MT in Eastern China. Meanwhile in Northern China, the same was reported at RMB 3,520/MT up by RMB 100 on a D-o-D basis.

-- Production cuts in China- Further, local authorities of Fengrun District, Tangshan, China has decided to strengthen the measures to prevent air pollution in the city. These measures would come into effect from early morning of 18 May'20 to midnight of 31 May'20.

-- Previously reported deals- According to deals recorded by SteelMint last week, Indian mills booked around 85,000-90,000 MT HRC for export to Vietnam, China and Nepal in the range of USD 397-405/MT, CFR.

Current imported HRC offers to Vietnam

-- HRC (SAE 1006, 2mm), China- Benxi Steel is offered at USD 430/MT CFR basis.

-- HRC (SAE 1006, 2mm), Japan- Nippon Steel's offer is at USD 430/MT CFR basis.

-- HRC (SAE 1006, 2mm), South Korea- Hyundai Steel is offering at USD 430/MT CFR basis.

-- HRC (Big coils), Russia- MMK is offered at USD 410/MT CFR basis.