Weekly: Global HRC & CRC Market Overview

Chinese HRC export offer continues to slump further-

-- HRC export offers from China weakened by USD 5/MT on announced lock-down across the globe to battle against COVID-19 pandemic.

-- Offers in this week stand at USD 400-405/MT FoB China, which was USD 405-410/MT FoB basis a week ago.

-- Meanwhile, Indian and Russian steel mills are quite aggressively exporting HRC to the Vietnam market at competitive prices.

-- Domestic prices decline due to moderate trading. Current HRC prices are hovering around RMB 3,,330-3320/MT, down by RMB 20-30 in eastern China and RMB 3,240/MT down by RMB 20 in Northern China. Downstream buyers have slowed down their purchase activities since the pandemic has hit the demand severely.

Indian mills booked around 1,00,000 MT HRC to UAE in last two weeks

-- Indian steel mills have booked around 1,00,000 MT of HRC for exports to UAE at USD 400/MT CFR basis in the last two weeks, SteelMint learned from its reliable market sources.

-- Sources further shared that, the importers in UAE are holding enough inventories in hand. Meanwhile, with the commencement of Ramadan month from 23rd April'20, will reduce buying appetite in Middle east nations in the near term.

Vietnam's Formosa cuts its production as the sales hits amid lock-down

-- Vietnam's integrated steel producer Formosa has trimmed its output owing to dwindling demand with the extension of lock-down announced in the country last week.

Due to this, the company has also delayed its HRC pricing announcement for May deliveries and is expected to release the same this week.

Current imported HRC offers to Vietnam-

-- Last week, two private Indian steel mills booked around 160,000 MT of HRC to Vietnam at around USD 399-405/MT CFR Vietnam for June deliveries.

-- Russian steel manufacturer Magnitogorsk Steel Works (MMK) booked around 20,000 MT HRC towards the end of the previous week at USD 388/MT CFR Vietnam for July delivery.

-- Japanese steelmaker Nippon Steel booked around 20,000 MT of HRC towards the end of last week at USD 420/MT CFR Vietnam for June delivery. Recent offers stand at USD 425-430/MT CFR Vietnam.

-- HRC (SAE 1006, 2mm), Japan- JFE Steel's offer assessed at USD 425/MT CFR basis. Prior offer- USD 420/MT CFR basis.

-- HRC (SAE 1006, 2mm), South Korea-Hyundai Steel's offer continues to hover at USD 415-420/MT CFR basis.

-- HRC (SAE 1006, 2mm), China- Baosteel continues offering at USD 410/MT CFR basis.

CIS origin HRC export offers remain stable-

-- The CIS-origin HRC export offers remain static on a weekly basis and continue to hover at USD 360-375/MT FoB Black Sea.

--Russian and Ukrainian mills are actively selling the material in sizable volumes to Turkish markets. Also, few deals have been concluded at USD 360-375/MT FoB Black Sea at these prices.

Market sentiments in Pakistan continues to remain bearish-

--SteelMint learned from its sources in Pakistan, that owing to the lock-down in effect until the end of this month will keep the market sentiments sluggish.

-- Also, the flat steel demand remained weak as the activities of the auto sector is closed during lock-down period

-- Meanwhile, the nation's govt has lifted the restrictions from the construction industry to ease the movement of goods.

-- It is expected that cold-rolled manufacturers will issue the June shipment inquiry this week. Current price indication from Japan and Taiwan is hovering around USD 430/MT CFR basis.

Source: SteelMint Research