IRON and STEEL
As per latest data released by Chinese customs, nation’s finished steel exports in Apr’19 stood at 6.33 MnT, unchanged as compared to previous month.
Higher steel prices amid robust demand in nation’s domestic market have kept export volumes stable in Apr’19. Meanwhile sluggish trades to Vietnam in the month of April amid competitive offers from Russian and Indian steel mills led Chinese export volumes firm in this month.
Chinese HRC export offers in Jan-Mar'19- On an average basis Chinese HRC export offers stood at USD 532/MT FoB basis in Mar’19 which was USD 506/MT in Feb’19.
Meanwhile as per Chinese government restrictions to curb excess steel capacity and to protect environment may tight supply and in turn result to surge in domestic steel prices and lower export volumes in upcoming months. Chinese steel mills in Tangshan and Handan regions will continue the production cuts in the second quarter (Apr-Jun). The average production cuts would be around 20 percent throughout April to June.
Whereas on yearly premise nation’s finished steel exports reported marginal decline of 2.3% in Apr’19 from 6.187 MnT in Apr’18
During the first four months (Jan-Apr) CY’19 nation’s finished steel exports accounted for 23.35 MnT, increased by 8.3% in comparison to 21.56 MnT in (Jan-Apr) CY’18.
This week imported HRC offers to Vietnam inch down by USD 5/MT on weekly basis after lowering of offers from Chinese mills amid weakening of Yuan against USD
Pellet offers for this week increased sharply in the recently concluded deals. SteelMint’s assessment stands at INR 6,900-7,000/MT (ex-Raipur, GST extra) against last week’s assessment of INR 6,600/MT. Current prices are hovering at 3-month high.
Sponge iron market seems to remain strong, as per manufacturers in central & eastern India. Rising raw material prices & active demand are likely to keep Indian sponge iron prices supported, they added.
SteelMint learned in recent conversations with industry participants that Pakistan’s steel market has turned uncertain after its currency hit record low levels.
Indian steel prices remain slightly surge by INR 100-400/MT on improved inquiries from the domestic buyers. The mid sized mills have raised Billet prices by INR 100-400/MT, Rebar by INR 100-300/MT & Sponge iron by INR 100-200/MT day on day in major markets.
SteelMint in conversation with market participants learned that Indian HRC import prices from Japan reported decline by USD 15-20/MT in recent booking for July shipments.