Global HRC Market Overview - Week 30, 2019

Indian mills resume HRC export offers to Nepal - As per conversation with industry participants, few major Indian steel mills in eastern India have resumed offering HRC exports to Nepal for Sep’19 deliveries.

With the commencement of new fiscal year in Nepal, trade sentiments have picked up and importers have started bidding for HRC export offers from India.

Thus as per information received, major eastern Indian steel mills is offering HRC around USD 510-515/MT (ex-factory) which is assessed around USD 530-535/MT CFR Raxaual border for Aug Sep shipments.

Chinese HRC export offers remain largely stable- Chinese HRC export offers remained largely stable on weekly basis over moderate demand from downstream buyers.

Also supply drop in HRC due to stringent production curbs announced in Tangshan region by the Chinese government from 21st Jul’19 to 25th Jul’19 may increase steel prices in domestic market. Also govt have ordered steel mills to idle their sintering machines and blast furnace completely by 26 Jul’19 to 28th Jul’19

Currently nation’s HRC export offers are hovering at USD 507-510/MT FoB basis.Similar levels were seen a week earlier.

Meanwhile prices in Eastern China too were unchanged on D-o-D basis and are hovering at RMB 3,880-3,900/MT. However prices in Tanghsan region is around RMB 3,850-3,860/MT.Price mentioned above are inclusive of 13% VAT.

Thus Chinese steel prices are expected to increase amid ongoing production cuts.However moderate demand and slowdown in trading activities both in domestic and export market will make it difficult to sustain increased offers in market.

Vietnam imported HRC market observes less trades- Last week domestic mill steelmaker Formosa Ha Tinh by USD 25/MT for HRC (SAE1006,skin pass) at USD 541/MT CIF basis.

Following this Indian steel mills have raised imported HRC to Vietnam by USD 5-10/MT and are offering at USD 520-525/MT CFR basis which was USD 510-515/MT CFR a week ago.

However imported HRC offers to Vietnam is heard at USD 515-525/MT CFR basis from China.

CIS nation’s HRC export offers moved up - CIS origin HRC export offers moved slightly this week.Currently HRC export offers from CIS nation’s is hovering around USD 490-500/MT FoB Black Sea which was USD 485-500/MT FoB basis.