Weekly: Global HRC & CRC Market Overview

Chinese HRC export offers witness hike on strong futures

--Chinese HRC export offers increased by USD 20/MT on a weak basis following gains in the domestic market. Also, an upward trend in futures fueled optimistic sentiments in exports and overseas markets.

--Thus, the current assessed HRC export offer stands at USD 425-430/MT FoB China, which was USD 405-410/MT FoB basis a week ago.

--Meanwhile, market participants anticipated short supply with mills in the Northern Province due to production cuts scheduled from 18th May until 31 May'20 to improve air quality ahead of the week-long annual meeting of National People's Congress and Chinese People's Political Consultative Conference scheduled from 22 May'20.

--Also, the domestic HRC prices surged by RMB 100/MT on a day-on-day basis to RMB 3,520-3,550/MT (Eastern China) with robust domestic demand.

Imported HRC offers to Vietnam moved up -

Major exporting nations have raised their HRC export this week following uptrend in export offers from china. This, in turn, leads to recovery in imported HRC offers to Vietnam.

-- HRC (SAE 1006, 2mm), China- Benxi Steel is offered at USD 430/MT CFR basis.

-- HRC (SAE 1006, 2mm), Japan- Nippon Steel's offer is at USD 435/MT CFR basis.

-- HRC (SAE 1006, 2mm), South Korea- Hyundai Steel is offering at USD 430/MT CFR basis.

-- HRC (Big coils), Russia- MMK is offered at USD 410/MT CFR basis.

Indian steel mills raise HRC export offers on strong Chinese futures-

--Major mills have sharply increased their HRC export offers by around USD 20/MT amid strong Chinese futures. Also, improved demand for imports in China and Vietnam pushed mills to raise offers.

-- Current HRC export offers stood at USD 425-430/MT CFR Vietnam basis for July August deliveries. Last week's offers were at 405-410/MT CFR basis. However, no major deals have been reported yet.

UAE imported HRC prices strengthen with recent bookings from India-

--Last week major Indian steelmaker has booked a small parcel of HRC to UAE at USD 415-420/MT CFR basis up by USD 20/MT from the prior offer of USD 395-400/MT a few days back, SteelMint learned from its sources based in the Middle East.

--Further, they shared that the market will remain bearish owing to lacklustre demand amid Ramadan holidays scheduled next week.

CIS origin HRC offers fall marginally-

--Nation's HRC export offers have witnessed a marginal decline by USD 5/MT on the back of weak demand impacted by the concerns over COVID-19 pandemic.

--Thus, the current export offer stands at USD 350-360/MT FoB Black Sea as compared with USD 350-365/MT FoB basis a week ago.

Source: SteelMint Research