FOB China HRC
The index rose by $5/t yesterday (24.3.21) to US$740/t, MTD US$716.72/t.
Limited Chinese mills kept offers unchanged at $745-790/t fob China for SS400 HRC and HR sheet, inducing no buying interest from seaborne buyers as they preferred to wait until Chinee steel export tax rebate changes being confirmed. But some South American buyers are likely to buy at $770/t fob China for same grade coils, but buyers’ from other countries were targeting much lower prices, market participant said. It was difficult to close deals with some mills insisting buyers to take 100pc risk of tax rebate adjustments, but buyers abroad can only consider at most 50pc sharing of the tax changes, some traders complained.
The blocked transit through the Suez Canal led participants worried that general bulk cargo freight may rise further on rising oil prices, longer shipping route and steel shipment to some regions may be delayed, which would pass the additional cost into steel prices. (Argus)
Turkish Scrap
Turkish scrap import activity remained subdued on the day with the price sentiment still mostly bearish amid predominant views that scrap prices were yet to bottom out, sources said on March 24. A Turkish scrap importer said the market was quieter as most steelmakers were not looking for April shipments and not in the rush to start placing orders for May. He added that some buyers were inquiring for May shipments, but no deals were officially announced. Scrap suppliers were also reluctant to quote offers but were asking for bids instead, he said.
The importer said he heard market chatter about a deal at $415/mt CFR, for a US-origin cargo, which he reckoned was not a “surprising” price level. He estimated that $415/mt CFR was workable in the last few trading days. One sell-side source expected the downside in scrap prices to continue towards the bottom at around $400/mt CFR Turkey for premium HMS. A European agent source said it was difficult to predict the bottom price level as there has been no demand coming from Turkey recently. “It is too early to say we are at the bottom, but I feel that we are close,” a trader predicted. (Platts)
US HRC
The S&P Global Platts TSI US hot-rolled coil index was calculated at $1,342.75/st EXW Indiana March 24, up $21.25 from March 23.
A buyer placed an order at $1,350 for 1,000 st from an integrated mill for late May production. The minimum HRC price was now at $1,320, according to a second buyer. A trader indicated a tradable value at $1,320-$1,340 for new spot orders. (Platts)
| Indices | Price | Change | MTD |
| Platts TSI HMS 1/2 80:20 CFR Turkey ($/mt) | 415.00 | -2.50 | 440.42 |
| Steel Rebar FOB Turkey ($/mt) | 612.50 | -2.50 | 631.33 |
| Argus HRC NW Europe (€/mt) | 804.50 | 0.25 | 775.75 |
| Argus FOB China HRC ($/mt) | 740.00 | 5.00 | 716.72 |
| LME HRC FOB TIANJIN CHINA USD/mt | LME HMS 80:20 CFR TK | |||||||
| Bid | Ask | Value | Bid | Ask | Value | |||
| Mar-21 | 720 | 730 | 725 | Mar-21 | 425 | 435 | 430 | |
| Apr-21 | 735 | 745 | 740 | Apr-21 | 425 | 435 | 430 | |
| May-21 | 730 | 740 | 735 | May-21 | 435 | 445 | 440 | |
| Jun-21 | 715 | 725 | 720 | Jun-21 | 440 | 450 | 445 | |
| Q2-21 | 727 | 737 | 732 | Q2-21 | 433 | 443 | 445 | |
| Q3-21 | 678 | 688 | 683 | Q3-21 | 440 | 450 | 445 | |
| LME REBAR FOB TK | BUSHELING | |||||||
| Bid | Ask | Value | Bid | Ask | Value | |||
| Mar-21 | 625 | 635 | 630 | Apr-21 | 575 | 585 | 580 | |
| Apr-21 | 625 | 635 | 630 | May-21 | 585 | 595 | 590 | |
| May-21 | 625 | 635 | 630 | Jun-21 | 605 | 615 | 610 | |
| Jun-21 | 625 | 635 | 630 | Jul-21 | 600 | 610 | 605 | |
| Q2-21 | 625 | 635 | 630 | Q2-21 | 588 | 598 | 593 | |
| Q3-21 | 619 | 629 | 624 | Q3-21 | 593 | 603 | 598 | |
| US HRC USD/short ton | NWE HRC EUR/metric ton | |||||||
| Bid | Ask | Value | Bid | Ask | Value | |||
| Mar-21 | 1267 | 1277 | 1272 | Mar-21 | 780 | 790 | 785 | |
| Apr-21 | 1345 | 1355 | 1350 | Apr-21 | 865 | 875 | 870 | |
| May-21 | 1335 | 1345 | 1340 | May-21 | 840 | 850 | 845 | |
| Jun-21 | 1327 | 1337 | 1332 | Jun-21 | 830 | 840 | 835 | |
| Q2-21 | 1336 | 1346 | 1341 | Q2-21 | 845 | 855 | 850 | |
| Q3-21 | 1221 | 1231 | 1226 | Q3-21 | 798 | 808 | 803 | |