Weekly: Global HRC And CRC Market Overview

Chinese HRC export offers remained largely stable on limited inquiries- The nation's HRC export offers remained largely stable this week due to fewer trade inquiries owing to lockdown announced across the globe to prevent COVID-19.

--The current HRC export offers are reported at USD 405-410/MT FoB China basis

--Meanwhile Chinese steelmakers have shifted their interest to imports on cheaper HRC export offers from major steel producing nations like India, Russia and Korea. Last week, South Korean mill concluded the deal for around 100,000 MT HRC to China at USD 385/MT CFR China basis for May shipments.

--Also, Chinese domestic HRC prices were noted at RMB 3,330-3,350/MT (Eastern China) and RMB 3,220-3,230/MT (Northern China).

Vietnam awaits price announcement of Formosa- Offers have remained largely consistent from major exporting nations.

Current imported HRC offers to Vietnam-

--HRC (SAE 1006, 2mm), China- On a mill-to-mill basis the offer continues to hover between USD 410-425/MT CFR basis.

-- HRC (SAE 1006, 2mm), Japan- Nippon Steel's offer is consistent at USD 420/MT CFR basis.

-- HRC (SAE 1006, 2mm), Japan- JFE Steel's offer is consistent at USD 420/MT CFR basis.

-- HRC (SAE 1006, 2mm), South Korea-Hyundai Steel's offer is hovering at USD 420/MT CFR basis.

-- HRC (SAE 1006, 2mm), Russia- Severstal is offering at USD 368-370/MT CFR basis.

-- Last week, Russia-based MMK steel mill had concluded a deal of around 80,000 MT HRC (big coils) to Vietnam at USD 370/MT CFR basis for June delivery.

--Confirmed trade deal heard of around 30,000 MT of HRC was booked by Indian steel mill via traders at USD 390/MT CFR basis for June shipments.

-- Vietnam based domestic steelmaker Formosa Ha Tinh is planning to announce its HRC prices shortly.

Imported HRC offers to UAE from India- Indian steel mills continue to offer HRC to UAE at around USD 398-400/MT CFR basis. Also, market participants shared that a couple of days back a few deals of around 15,000-20,000 MT for position cargoes have been concluded by Indian steel mills at this price level.

CIS origin HRC export offer remain unchanged- CIS origin HRC offer remains unchanged and continued to hover at USD 360-375/MT FoB Black Sea owing to higher inventory levels and bearish sentiments in the domestic market.

Source: SteelMint Research