Global HRC Market Overview - Week 29, 2019

Chinese HRC export offers continue to remain on lower side- Chinese HRC export offers continue to show downturn this week owing to thin trades happening in export market. Overseas buyers are unwilling to purchase material at higher prices and are bidding on lower side with the anticipation of further decline in prices.

Thus currently nation’s HRC export offers assessed at USD 505-510/MT FoB basis.

Prices in eastern China up by RMB 30/MT and are hovering at RMB 3,880-3,900/MT. Price mentioned above are inclusive of 13% VAT.

However with stringent production emissions in Tangshan region will lead to supply cut in HRC and in turn will increase price in domestic market.

Imported HRC offers to Vietnam inch down- This week imported HRC offers to Vietnam went down further following decline in HRC export offers from China and India.

Thus on weekly basis imported HRC offers to Vietnam fell by USD 10/MT and are heard at USD 505-515/MT CFR basis. Meanwhile offers from Indian mills are also heard at USD 513-515/MT, CFR basis.

Also market sources based in Vietnam shared that domestic integrated steelmaker Formosa Ha Tinh will revise its monthly HRC (SAE1006, skin pass) offers shortly for Aug-Sep shipments.

CIS nation’s HRC export offer increases over limited supply- CIS nation’s HRC export offer increases further by USD 10/MT this week amid ongoing maintenance and repairs works scheduled in few mills in CIS nations.

Currently CIS origin HRC export offers stood at USD 490-505/MT FoB Black Sea. However last week offers stood around USD 480-495/MT FoB basis.

Indian HRC export offers slump further for Vietnam- As per market sources, Indian steel mills decline HRC export offers further for end users based in Vietnam by around USD 5-10/MT and are hovering at USD 510-515/MT CFR Vietnam.