Imported HRC Prices to India Decline in Recent Booking from Japan

SteelMint in conversation with market participants learned that Indian HRC import prices from Japan reported decline by USD 15-20/MT in recent booking for July shipments.

As per an update received from market sources, India based rerollers and stockists have booked around 20,000 MT of HRC from major steel mill based in Japan at around USD 540/MT CFR India for July shipments.

Thus as per calculations,landed cost of imported HRC to India will remain around INR 39,300-39,400/MT. Meanwhile domestic HRC prices (2.5-8mm) is assessed around INR 41,000/MT (ex-Mumbai).

In the beginning of this month SteelMint reported that Indian steel importers have booked around 20,000-28,000 MT of HRC with South Korea for June shipments at USD 560/MT, CFR India for June shipments.

Imported HRC offers to Vietnam inch down - This week imported HRC offers to Vietnam inch down from China.Chinese steel prices started tumbling amid fluctuating futures and weakening yuan against RMB.Also USA China trade war results to falling export offers from China.

Thus current HRC import offers to Vietnam is around USD 520-525/MT CFR Vietnam.Meanwhile Indian steel mills also lower HRC offers to Vietnam and are offering at USD 530-535/MT CFR basis.

Chinese HRC export offers decline over depreciation in Yuan- Chinese HRC export offers reported fall this week owing to reduction of Yuan against USD. On weekly basis nation’s HRC export offers reduced by USD 10-15/MT .

Meanwhile increased trade tensions between USA and China on increase in tariffs from 10% to 25% on various products will be implemented from 1st June’19 results to falling steel prices from China.

Currently nation’s HRC export offer is assessed at around USD 510-520/MT FoB basis. Last week the offers stood at USD 520-525/MT FoB basis.

Meanwhile prices in domestic market fell by RMB 10/MT D-o-D basis and stood at RMB 4,000-4,010/MT n eastern China (Shanghai).

And prices at Northern China remain moderate and stood at RMB 3,900-3910/MT in Northern China (Tangshan).

CIS- origin HRC export offers remain moderate - This week CIS nation’s HRC export offers remain moderate as buyers are waiting for further clarity as USA govt. halved its trade tariffs from 50% to 25% on Turkey imports.

This will reopen USA market for Turkey steel imports and improve demand of steel in Turkish regions.

Meanwhile buyers are preferring to adopt wait and watch mode for booking cargoes for June shipments.

However Ramadan (Islamic holy month) have also been started last week which resulted to slowdown in trade activities in CIS regions.

Currently offers are in the range USD 460-480/MT FoB Black Sea.