Global HRC & CRC Market Overview

Posted on 07 February 2020

Indian steel mills hold HRC export offers- Following a delay in the resumption of the Chinese steel export market, Indian steel manufacturers are holding their HRC export offers for March -April shipments.

Also, they are closely watching the direction of Chinese HRC export offers since steel mills in China would not be able to supply as much to Vietnam over delayed resumption. Thus, importers based in Vietnam are looking for alternative supplies from other exporting nations like India, Russia, Japan, and Korea.

Imported HRC offers to Vietnam remain under pressure

This week offers of positioned HRC cargoes to Vietnam witnessed a decline of USD 20-25/MT as the market participants are slowly resuming to market after the Tet and the extended Lunar New Year holidays.

Market participants shared that, “Imported HRC market is in chaos as prices are moving down sharply from China. Buyers have adopted a wait and watch mode as offers remain unclear from major exporting nations.”

Current HRC offers to Vietnam

HRC (SAE 1006) 2mm, China- Rizhao Steel's offer at USD 495/MT CFR basis, which was USD 517- 520/MT CFR basis in the previous week.

HRC (SAE 1006) 2mm, China- Benxi is offering at USD 505/MT CFR basis in contrast with USD 520-525/MT CFR basis in the previous week.

HRC (SAE 1006) 2mm, China- Maanshan Steel’s offer is at USD 495/MT CFR basis.

Imported HRC Offers to UAE from India

Market participants shared that there are no firm offers for imported HRC to UAE from India. However last offers were heard to be around USD 545-550/MT CFR UAE. Thus, mills have held the offers currently. Meanwhile seeing the market scenario customers are bidding around USD 535/MT CFR basis. However, no major deals have been concluded yet.

Imported HRC Offers to Pakistan from China

Chinese steelmakers are offering HRC (SS400) position cargo for Feb shipments at around USD 490/MT CFR basis. However, customers are bidding around USD 470/MT CFR basis. Also, no new offers or SAE1006 since re-rollers have already booked the material for March shipments.

Chinese domestic HRC prices slump over fears of coronavirus

The Chinese HRC export offers remain largely stable this week with only a few market participants resuming to the market after the Lunar New Year holidays.

Thus the current HRC export offer stands at USD 500-505/MT FOB China.

Meanwhile, the domestic HRC prices slumped by RMB 230/MT to 3,630-3,650/MT (Eastern China) and RMB 3,300 down by RMB 290/MT as the market started to resume post-New Year holidays. However, no major transactions concluded at this price.

However, the market has resumed partially as most of the buyers haven’t returned to the market. The Coronavirus outbreak forced the govt to announce an extension of the New Year holidays, following a transit lockdown in Wuhan city on 23 Jan. However, most of the market participants have delayed the resumption for yet another week amid concerns of the virus spreading even more.

Meanwhile, if market participants are to be believed, Chinese steel prices are expected to decline further over increased supplies owing to delayed resumption by downstream buyers.

CIS-origin HRC export offers remain stable

The CIS-origin HRC export offers have held consistent this week, while trades have been reported to be slowed.

Thus, the current HRC export offers continue to hover at USD 475-490/MT FOB Black Sea.

Particulars

Currency

Prices

HRC, FOB China

USD/MT

500-505

CRC, FOB China

USD/MT

540-550

HRC, FOB Black Sea

USD/MT

475-490

CRC, FOB Black Sea

USD/MT

535-550

HRC, CFR Vietnam from China

USD/MT

495-505

HRC, CFR Vietnam from India

USD/MT

540-550

HRC, CFR UAE from India

USD/MT

545-550

HRC, CFR Pakistan from China

USD/MT

490-500

Source: SteelMint Research

  

Source : Mysteel Global