Global HRC Market Overview- Week 36, 2019

Chinese HRC export offers slide further over thin trades- This week Chinese HRC exports offers move down slightly over subdued trades. Meanwhile overseas buyers continue to bid on lower side in order to procure material at cheaper prices.

Currently nation’s HRC export price assessment is at USD 465-475/MT FoB widening downwards by USD 5-10/MT against USD 470-475/MT in previous week.

However amid gains in futures market, Chinese steelmakers have increased domestic prices by RMB 20-30/MT D-o-D basis and stood at RMB 3,640-3,660/MT. Meanwhile prices in northern region also moved up by RMB 20-30/MT on D-o-D basis at RMB 3,630-3,640/MT Prices mentioned above are inclusive of 13% VAT.

Trading activities continue to remain weak as buyers are waiting for price announcement by major steelmakers for Oct deliveries.

Falling HRC export offers weigh on imported HRC offers to Vietnam- This week imported HRC offers to Vietnam continue to remain under pressure over continual decline in imported HRC offers to Vietnam from India and China.

Meanwhile end users in Vietnam are eyeing for lower HRC offers from major exporting nations and preferring mostly Indian origin cargo over China amid cost effective prices.

Current HRC trades to Vietnam

1. HRC (SAE 1006) 2-3mm/Chinese offer- Laiwu Steel- traders are inviting bids at USD 460-462/MT CFR Vietnam. Last week offer was at USD 465/MT CFR basis.

2. HRC (SAE 1006) 2mm/Japanese offer– Nippon Steel at USD 495-500/MT CFR Vietnam.

3. HRC (SAE 1006) 2mm/Korean offer– Hyundai is offering at USD 485/MT CFR Vietnam.

CIS- origin HRC offers continue to remain on lower side- This week CIS nation’s HRC export offers is hovering around USD 450-460/MT FoB basis. Market sentiments continue to remain low and buyers expecting further downside in prices.

Meanwhile market sources based in CIS nations shared that HRC offers to Turkey is assessed around USD 470-475/MT CFR basis.

Indian origin positioned HRC cargoes to Vietnam edge lower- Market participants based in Vietnam shared that major Indian steel mill is offering position cargoes of HRC at around USD 450/MT CFR basis.

However no major trades reported currently at these offers. Buyers are observing the market trend and will start booking the material shortly for Sep end Oct shipments.