Japanese Mills Raise HRC Export Offers for April

SteelMint in conversation with market participants learned that Japanese based major steelmakers have increased HRC export offers by around USD 30-35/MT for April shipments.

Currently Japanese HRC export offers for Indian mills is assessed at USD 580/MT CFR India for April shipments.However no major bookings is reported yet at revised offers.

Previously,the offers were in range of USD 540-550/MT CFR India for March shipments.

Reasons behind surge in HRC export offers :

1.Active buying post Lunar New year holidays- Post Chinese New Year holidays end users are actively restocking the material which lead to surge in HRC export offers from major steel exporting nations.Thus optimistic demand in global market and resumption of business activities amid end of winter season pushed HRC export offers in upward direction.

2.Chinese & Indian mills increased HRC export offers- Major Chinese steel manufacturers are constantly increasing HRC export offers over gains in domestic market.Chinese steelmakers have increased HRC export offers by USD 20/MT post Lunar New year holidays.

Meanwhile Indian HRC export offers moved up by around USD 20/MT for Vietnam buyers which is around USD 545-550/MT CFR basis.

3. Increased cost of production- In the wake of accident in Brazilian Vale which had suspended several iron ore and pellet contracts with buyers after the dam collapse resulting in rising demand from overseas markets, this in turn pushed prices of finished steel too.

4.Improve demand in Japanese domestic market- Japanese steelmakers are enjoying solid domestic demand from automakers and the construction sector ahead 2020 Tokyo Olympics.

Meanwhile as per Steel Daily report ,South Korea based major steel mill will also hike HRC export offers by USD 40/MT for April shipments.