Global HRC Trade Market Overview - Week 22, 2019

As per an update received, an Indian major steel mill based in western region has booked 2-3 rakes of re-rolling grade HRC ( 1.6mm-2.4mm, SAE 1006) at around USD 565/MT CFR Rauxal border for June end-July shipment.

However, by end of previous week another Indian steel based in eastern region mill had booked 4-5 rakes of HRC (thin gauge, 1.6mm-2.4mm) at USD 535/MT (ex-plant) which is coming around USD 555/MT CFR Raxual border for June- July shipments. The freight component is taken around USD 20-25/MT.

Imported HRC offers to India witness decline from Japan- Trade sources shared that around a week back another deal for imported HRC of 20,000 MT has been confirmed with Japan at USD 535/MT CFR India for June-July shipments.

Prior this, last week India based re-rollers 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.

However in the beginning of this month, Indian HRC import offers from Japanese and Korean mills was hovering at USD 555-560/MT CFR India for June shipments.

Imported HRC Offers to Vietnam continued to remain on lower side- Imported HRC offers from China continued to remain on downside amid weakening Yuan against USD along with China USA trade war,Thus this impacted Chinese steel prices and in turn weakened imported HRC offers to Vietnam.

Currently imported HRC offers to Vietnam from China is assessed at USD 510-515/MT CFR Vietnam for June end July shipments. On monthly basis imported HRC offers to China decline by USD 20-22/MT.

Meanwhile a major Indian steel mill based in eastern region booked 20,000 MT HRC (SAE 1006) with Vietnam at 510/MT CFR Vietnam for July shipment. However previous week offers were around USD 520-525/MT CFR Vietnam. Hence this week prices have moved down by around USD 10/MT W-o-W.

Also disparity between bids and offers limit trade activities as buyers in Vietnam want to secure cargoes at lower prices.

Chinese HRC export offers showed downturn amid weakening domestic prices- Chinese HRC export offers reported decline this week owing to volatile futures and falling steel prices in domestic market.

Also intensifying trade tensions between USA and China on implementation of hike in tariffs from 10% to 25% on various products from 1st June’19 has put pressure on steel prices in China.

Thus currently nation’s HRC export offer declined by USD 5-10/MT and was assessed at around USD 505-510/MT FoB basis. Last week the offers stood at USD 510-520/MT FoB basis. However Chinese mills have lowered HRC export offers in order to attract overseas buyers after dull buying since last few weeks.

Domestic HRC prices in China is hovering at RMB 3,990-4,000/MT fell by RMB 10 D-o-D basis in 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 move up- This week CIS nation witnessed upward momentum in HRC export offers by USD 10/MT after showing downtrend since past few weeks.

Thus currently CIS- origin HRC export offers stood in range of USD 470-490/MT FoB Black Sea. In previous week offers were at 460-480/MT CFR Black Sea.