IRON and STEEL
In the latest conversation with market sources based in Bangladesh, SteelMint analyzed that imported HRC offers to Bangladesh from China witnessed significant decline by USD 20-25/MT in last couple of weeks. Bangladesh market has opened this week after Eid holidays.
Currently imported HRC (2mm) offers to Bangladesh is hovering around USD 520-525/MT CFR Chittagong. However before Eid holidays offers were prevailing at USD 548-550/MT CFR basis assessed in end May’19.
Thus continual decline in HRC export offers from China in turn leads to downturn in imported HRC offers to Bangladesh for Jul Aug shipments.
A steel importer based in Bangladesh shared that,”Market sentiments in Bangladesh continue to remain slow post Eid holidays as importers have recently resumed to work. Meanwhile they are currently observing HRC export offers and expecting further downside in steel prices from China for July Aug shipments”.
However few importers may plan to book some material shortly ahead of monsoon season arriving in the month of July.
Bangladesh bulk vessel HRC import data in May’19- As per provisional data maintained with SteelMint, Bangladesh bulk vessel imports in May’19 summed-up to 69,372 MT and shrunk by 19% against 85,846 MT in Apr’19.
With the commencement of this week, imported HRC offers to Vietnam registered decline by USD 5-10/MT W-o-W on the back of softening prices in Chinese steel market owing to sparse trading and ‘wait & watch’ approach adopted by Vietnam based end users.
SteelMint in conversation with market participants learned that Raipur (central India) based pellet manufacturers have increased their offers today by INR 200/MT. Current offers for Fe 63% grade to INR 7,000/MT (ex-Raipur, GST extra) as against last assessment at INR 6,800/MT.
South Korean based Hyundai Steel, in its Dangjin steel Mill can operate its blast furnace No 2 normally until the administrative authority comes out with probable alternatives to prevent fire or an explosion, as per Steel Daily.
In recent conversation with industry participants SteelMint learned that steel mills in Bangladesh have turned active for bulk bookings. It is learnt that 2 bulk cargos for ferrous scrap were booked recently from USA and Japan, to Bangladesh
The global billet market remained sluggish this week, as Turkish imported scrap prices have witnessed a drop amid limited deals. However market remained abuzz with recent billet bookings by China from Iran and Qatar made in last couple of weeks.
This week Chinese steel prices witnessed downside over volatile futures.Meanwhile this in turn resulted to marginal decline in export offers from China.