Japanese Mills Raise HRC Export Offers for March Shipments

Japan-based major steel manufacturers are heard to have raised HRC export offers for March shipments, Steelmint confirmed from its market sources. Export offers to Vietnam moved up by USD 20-25/MT for early March shipments owing to an uptrend in the global HRC prices.

Fresh HRC export offers stand at USD 530-535/MT CFR Vietnam in contrast with the prior offers at USD 510/MT CFR basis.

China HRC export offer moves up further- The Chinese HRC export offer witnessed a further increase of USD 5/MT on a weekly premise following gains in the domestic market.

Current HRC export offers from Chinese mills assessed at USD 495-500/MT FoB China as compared with USD 490-500/MT in the previous week.

Meanwhile, domestic HRC prices remained stable on a day-on-day premise to RMB 3,900-3,910/MT (Eastern China) amid gradual winding up of activities by buyers ahead of the Chinese New Year.

Indian mills raise HRC export offers to Vietnam sharply- Indian steel mills further raised HRC export offer to Vietnam by USD 10-15/MT for March shipments to USD 530-535/MT CFR Vietnam, which was USD 520-525/MT in the preceding week.

The tight supply in the domestic market pushed Indian steel mills to raise the export offers to the overseas market. Also, mills are giving preference majorly to domestic supplies over better demand and have limited allocation for overseas markets.

However, no major bookings have been reported at increased offers as Vietnamese buyers are considering Indian HRC cargoes too high compared to China.

Imported HRC offers to Vietnam increase further- This week, imported HRC offers to Vietnam witnessed a further hike from major exporting nations amid rising global HRC prices.

Meanwhile, the short supply due to Formosa's maintenance shutdown until 17th Jan'20 and restocking of imported HRC ahead of the Tet New Year holidays can also be attributed to the rise in offers.

1. HRC (SAE 1006) 2mm, China- Benxi is offering at USD 520/MT CFR basis for Mar shipments. The last offer was hovering around USD 515/MT CFR basis.

2. HRC (SAE 1006) 2mm, China- Baosteel is offering at USD 520/MT CFR basis.

3. HRC (SAE 1006) 2mm, China-Rizhao steel offer stood at USD 515/MT CFR. Last week's offer was heard around INR 510/MT CFR basis.

4. HRC (SAE 1006, pipe making) 2mm, China- Laiwu steel is offering at USD 510/MT CFR basis, consistent over the previous week offers.

5. HRC (SAE 1006) 2mm, China- Chung Hung steel is offering at USD 520/MT CFR basis.

6. HRC (SAE 1006) 2mm, Taiwan- Shang Chen steel is offering at USD 515-520/MT CFR basis, stable against the previous week offers.

Source: SteelMint Research