Global HRC Market Overview - Week 51, 2018

Chinese HRC export offers continued to remain on lower side- Chinese HRC export offers remained on lower side over weakening prices in domestic market.

Thus domestic steel prices weigh on export offers in China.Currently HRC export offers from China is assessed around USD 475-480/MT FoB basis.

However major mills in China is offering on higher side which is around USD 490/MT FoB.

Meanwhile prices of HRC in the domestic market fell further by RMB 10/MT on D-o-D basis and presently domestic HRC is assessed around at RMB 3,800-3,810/MT (ex-works) in Eastern China.

CIS origin HRC export offers fell further- CIS origin HRC export offers fell further by USD 10-15/MT over sluggish trades and weaker buying interest among overseas buyers.By the end of the year prices are expected to fall further amid bearish sentiments in CIS nation’s.

Currently CIS nations is offering HRC export offers in range of USD 450-470/MT FoB Black Sea.Last week the same was stood at USD 460-475/MT FoB Black sea.

Imported HRC offers to Vietnam dips further- Imported HRC offers dip down further over thin trades.Meanwhile last week domestic producer Formosa also decline (HRC skin pass) offers by USD 50/MT for Feb shipments.

Current trades of HRC to Vietnam - Week 51

1.HRC (SAE 1006) 2-3mm / Chinese offer- Benxi Steel is at USD 495/MT CFR Vietnam.

2. HRC (SAE 1006) 2-3mm / Chinese offer- Rizhao Steel is at USD 490/MT CFR Vietnam

2.HRC (SAE 1006) 2-3mm / Chinese offer - Xinyu Steel is at USD 480/MT CFR Vietnam.Earlier this week it was around USD 485/MT CFR in previous week.

3.HRC (SAE 1006) 2-3mm / Chinese offer - Laiwu Steel is at USD 480/MT CFR Vietnam.Earlier this week it was around USD 485/MT CFR in previous week.

4.HRC (SAE 1006) 2-3mm / Russian offer - steel is at USD 490/MT CFR Vietnam.

5.Vietnam’s based Formosa is offering HRC (SAE 1006,skin pass) in the range of USD 480/MT CFR basis for Feb’19.

Absence of active HRC export offers from India- As per market sources,Indian mills are not actively exporting HRC to South East Asian nations ahead of year end holidays.Meanwhile subdued buying and lesser realizations amid lower export offers results to weaker trades in HRC export market.