Chinese HRC export offers fall due to bearish sentiments –
— Chinese HRC export offers witnessed a slight fall by USD 5/MT owing to the pessimistic sentiments in the domestic market. Also, competitive HRC export offers from India amid lockdown situations resulted in the downside in the nation’s HRC prices.
–Also due to COVID-19 many countries have announced lockdown which resulted in weak trading in the overseas market.
— The current export offers are assessed at USD 420-425/MT FoB China, which was USD 425-430/MT FoB basis a week ago.
— Meanwhile, domestic prices decline by RMB 10-20/MT D-o-D basis and hovering at USD 3,280-3,290/MT (Eastern China) and RMB 10/MT down D-o-D basis and stood at USD 3,250/MT in Northern China.
Indian mills exploring export options as domestic demand remains muted-
— Indian HRC export offers to Vietnam stands at USD 400-405/MT CFR Vietnam, which is equivalent to around USD 385-390/MT FoB India. With domestic trades coming to a halt post lockdown, Indian mills have started exploring export options actively.
— Last week a western-based Indian mill booked 40,000 MT of HRC with Vietnam at USD 405/MT CFR basis for may June shipments.
— Meanwhile, the current offers for UAE stands at USD 410/MT CFR basis which is equivalent to around USD 380-390/MT FoB India.
Vietnam Government announces 15 days lockdown period-
— The nation’s government has announced a 15 days lockdown, commencing from 1st Apr’20 until 15 Apr’20 to halt the spread of virus COVID-19.
Current imported HRC offers to Vietnam-
— HRC (SAE 1006, 2mm), China- Benxi Steel is offering at USD 410-415/MT CFR basis. The previous offer was at USD 420/MT CFR basis.
— HRC (SAE 1006, 2mm), China- Chunghung Steel is offering at USD 415/MT CFR basis. The previous offer- USD 420/MT CFR basis.
— HRC (SAE 1006, 2mm), Russia- MMK is offering USD 380-395/MT CFR basis.
–HRC (SAE 1006, small coils) Ukraine – Metinvest offering HRC at USD 425-430/MT CFR basis.
— Formosa Ha Tinh is offering HRC (SAE 1006, skin pass) at around USD 480/MT CFR for May shipments. Sources also shared that, the company may cut production in the near term, although it’s still under discussion.
CIS origin HRC export offer fall over sluggish demand-
— The CIS origin HRC export offers plunged by USD 20/MT owing to the dampened demand across the globe amid the growing concerns of COVID-19 which is hindering overseas trades.
— Current offers are assessed at USD 415-425/MT FoB Black Sea, which was USD 435-445/MT FoB basis in the previous week.
|HRC, FoB China
|CRC, FoB China
|HRC, FoB Black Sea
|CRC, FoB Black Sea
|HRC, CFR Vietnam from China
|HRC, CFR Vietnam from India
|HRC, CFR UAE from India
Source: SteelMint Research