Traders Slash Indian HRC Export Offers on Currency Depreciation

Indian origin HRC export offers to Vietnam witnessed a sharp decline of USD 10-15/MT this week, SteelMint learned from its authentic sources. Indian HRC offers from traders were reported at USD 450/MT CFR Vietnam for end April-mid May shipments. However, no major bookings have been reported yet. Increasing fears of the spread of COVID-19 resulted in pessimistic sentiments. Also, depreciation of USD against INR is another factor that has resulted a sharp fall in HRC export offers. INR is trading at 75.07 against USD versus 71.6 a month back

However, offers from major Indian steel mills are still learned at around USD 455-460/MT CFR Vietnam basis.

Chinese HRC offers to Vietnam decline post increase in tax rebate
--Chinese ministry of finance increased HRC tax rebate from 10% to 13% which shall lead to a drop in HRC export offers and stimulate trade activity in the global market. Thus Chinese steelmakers are offering HRC to Vietnam based importers at USD 450/MT CFR basis which was around USD 463-465/MT CFR at the beginning of the week. Imported HRC offers to Vietnam expected to fall further, shared by HRC buyer based in Vietnam.

Current imported HRC offers to Vietnam-
-- HRC (SAE 1006, 2mm), China- Benxi is offering at USD 450-455/MT CFR basis which was at USD 463-465/MT at the beginning of the week.

--HRC (SS 400), Chinese mills offering at USD 450/MT CFR basis.

-- HRC (SAE 1006, 2mm), Japan- Nippon Steel is offering at USD 465/MT CFR basis, down from USD 470/MT at the beginning of the week.

-- HRC (SAE 1006, 2mm), Japan- JFE Steel offer stands at USD 465/MT CFR basis. The previous week offers stood at USD 470/MT CFR basis.

--HRC (SAE 1006, 2mm, small coils), Ukraine - Metinvest Steel offer stands at USD 440/MT CFR basis. The previous week offer stood at USD 470/MT CFR basis.

--Formosa Ha Tinh announced a significant cut of USD 40/MT in its HRC (skin pass) and offering at USD 480/MT CIF Ho Chi Minh.