Weekly: Global HRC and CRC market overview

China HRC export offer softens on weakening demand-

--The weakening of the demand in the Southeast Asian countries due to approaching monsoon season led to a marginal decline in export offers by $5/t this week.

--Current week offer thus stands at $ 440-445/t FoB China as compared with $440-450/t FoB basis in the previous week.

--Meanwhile, the domestic prices also softened by RMB 10/t d-o-d to RMB 3,750-3,760/t (eastern china) on the back of falling futures.

--Also, the nation will remain on holiday until the weekend on the occasion of Dragon boat festival which is scheduled on 25th Jun'20. Thus upcoming holidays may soften the sentiments in the domestic market.

Limited HRC export deals reported from India

-- A private steel manufacturer in India booked around 20,000 t of HRC for China at around $445/t for Aug deliveries. However, it could not be confirmed till the time of publishing this report.

--Last week two major steel manufacturers had booked around 40,000t HRC at $438-440/t CFR Vietnam for July end- Aug shipment.

Imported HRC offers to Vietnam remain firm-

This week HRC offers from major exporting nations remain firm after an increase witnessed in the previous week due to the following reason:

-- Tropical cyclone Nuri, which resulted in heavy rainfall in the southern regions of the nation kept offers largely stable.

-- Imported HRC offers are at par with domestic HRC offers which increased the preference for local purchases.

-- Also, significant bookings made for June/July'20 deliveries at cheaper offers made importers reluctant to book fresh bookings for Aug'20 shipments.

Current imported HRC (SAE 1006, 2mm) offers for Vietnam-

-- China- Benxi steel offer stands at $465-470/t CFR basis.

-- China- Chung Hung steel offer stands at $450/t CFR basis.

-- China- Baosteel is offering at $455/t CFR basis.

-- Japan- Nippon steel and JFE are offering at $460/t CFR basis.

-- South Korea- Hyundai Steel offer stands at $465/t CFR basis.

--India- Trade sources reported that small lots of around 20,000 t of positioned cargo booked at $445/t CFR basis.

Pakistan imported HRC market activities hindered by extended lockdown-

-- The extension of lockdown until 2nd July in regions of Lahore and Karachi led to sluggish demand in the country. Meanwhile, the importers adopted the wait-and-watch approach as they are holding sufficient stocks due to the previously concluded deals.

--There have been no firm bids this week. However, indicative bids from Japan were at $440/t CFR basis, shared by a reliable Pakistani market source.

CIS origin HRC export offers moved up on improving demand-

--Improving demand in the importing nations along with high raw material costs led to an increase in export offers by $5/t.

--The offer currently stands at $405-415/t FoB Black Sea as against $405-410/t FoB basis a week ago.

Source: SteelMint Research