IRON and STEEL
Sailing, Ports & Shipping
In the beginning of this week imported HRC offers to Vietnam remain stable since buyers have booked few quantities last week in order replenish the stocks in anticipation of further surge in steel prices from major exporting nations.
Thus importers in Vietnam are currently reviewing HRC export offers from China for Aug Sep shipments.
As per market sources, last week Indian steel mills booked around 80,000 MT of HRC with Vietnam for July Aug shipments at USD 508-510/MT, CFR Vietnam last week.
However continual increase in Chinese steel prices amid announced production cuts in Tangshan region may result to uptrend in imported HRC offers to Vietnam shortly.
Current HRC Trades to Vietnam
1.HRC (SAE 1006) 2-3mm/Chinese offer- Benxi Steel is at USD 520/MT CFR Vietnam.
2.HRC (SAE 1006) 2-3mm/Chinese offer- Baosteel is at USD 520/MT CFR Vietnam.
3.HRC (SAE 1006) 2-3mm/Japanese offer- Nippon Steel is at USD 525/MT CFR Vietnam.
4.HRC (SAE 1006) 2-3mm/Indian offer- Indian steel mill offering at USD 515-520/MT CFR Vietnam for Aug sep shipments.
This week CIS billet export market remained slow witnessing less deals amid disparity between bids & offers. According to market sources report to SteelMint, current offers to SE Asia are at USD 455-460/MT CFR however buying interest is seen at USD 445-450/MT, CFR SE Asia levels. Prices have softened by USD 5-10/MT against last week.
The US subsidiary of Swedish steelmaker SSAB expects steel shipments in the third quarter to remain at similar levels as the prior three months.
SteelMint in conversation with trade participants learned that domestic HRC prices continued to slump further over gloomy demand and limited trades happening in domestic market. Domestic HRC prices are hovering at around 1.5 years low.
Australia - world's largest iron ore exporter has recorded rise in iron ore shipment for second quarter CY19, according to the vessel line up data maintained with SteelMint. Australia's iron ore export shipments recorded at 222.49 MnT in Q2 CY'19, up 18% as compared to 187.91 MnT in Q1 CY'19.
Vietnam’s domestic steel producer - Formosa Ha Tinh has today announced its monthly revision in its steel prices. The company has raised its HRC offers sharply by USD 25/MT for Sept shipments.
World's second largest iron ore miner- Rio Tinto's Pilbara depicted fall of 3% in iron ore shipment to 85.4 MnT in Q2 CY19 as against 88.5 MnT in Q2 CY18. The drop is attributed to fall in Apr’19 shipment due to recovery works following tropical cyclone Veronica in Mar’19. However, the shipment recorded significant rise of 24% as compared Q1 CY19 shipment at 69.1 MnT.