FOB China HRC
The index was stable yesterday (26.8.21) at US$908/t, MTD US$922/t.
Automakers including Toyota, Volkswagen and Ford have announced production cuts from September for lack of semiconductors. Covid lockdowns in Malaysia, a production center of semiconductors in southeast Asia, have been a driver of factory shutdowns.
Chinese HRC inventory held by traders and mills decreased by over 60,000t this week against a rise of over 20,000t last week, according to participants. HRC output also decreased this week with some large mills conducting maintenances.
Traders cut offers by around $10/t to $880-900/t cfr Vietnam for Indian SAE1006 grade coils, but failed to attract bids. A Russian mill was heard to have sold 20,000t SAE1006 grade coils at $860-875/t cfr Vietnam, but most participants could not confirm the deal and said major local buyers are in lockdown areas, so it would be hard to finalize any deals. (Argus)
EU HRC
The European hot-rolled coil (HRC) market was calm today, especially in Italy, where activity has not returned after the Ferragosto holiday.
The daily benchmark northwest EU HRC index nudged down by €3/t to €1,129.75/t, as a southern European seller reported small cut sheet sales in the low €1,100s/t delivered, base coil equivalent. The daily Italian HRC index nudged up by €1.25/t today to €1,035/t, as some anticipated an uptick in prices.
Buyers are tabling lower bids on the back of cheaper imported tonnes. In Italy some are only bidding below €1,000/t ex-works, for sizeable tonnages, with at least one seller still trying to move October tonnages.
There is concern that the worsening Covid-19 situation in Asia could exacerbate the semiconductor shortage in the fourth quarter. This is also impacting sentiment in southeast Asia; a trader reported buying Russian material at $860/t cfr Vietnam today, after sales were done at around $875/t cfr in the last few days. The spread of Covid-19 in Malaysia, the production centre for semiconductors in southeast Asia, is expected to lead to further production disruption. (Argus)
US HRC
The S&P Global Platts TSI US hot-rolled coil index was calculated at $1,910.75/st EXW Indiana Aug. 26, up 25 cents from Aug. 25.
A Midwest service centre source said that a Midwest converter quoted on Aug. 20 undisclosed tons of pickled and oiled product at a base price of $1,910/st after normalizing grade and extras. Another Midwest service center source indicated an offer at $1,970/st for 1,000 st inquiry from an integrated mill for October production. That indication, however, was not factored into the volume-weighted average calculation based on Platts methodology. (Platts)
| Indices | Price | Change | MTD |
| Platts TSI HMS 1/2 80:20 CFR Turkey ($/mt) | 447.50 | 0.00 | 457.62 |
| Steel Rebar FOB Turkey ($/mt) | 670.00 | 0.00 | 694.87 |
| Argus HRC NW Europe (€/mt) | 1129.75 | -3.00 | 1144.38 |
| Argus FOB China HRC ($/mt) | 908.00 | 0.00 | 925.71 |
| LME HRC FOB TIANJIN CHINA USD/mt | LME HMS 80:20 CFR TK | |||||||
| Bid | Ask | Value | Bid | Ask | Value | |||
| Aug-21 | 922 | 932 | 927 | Aug-21 | 457 | 467 | 462 | |
| Sep-21 | 915 | 925 | 920 | Sep-21 | 460 | 470 | 465 | |
| Oct-21 | 923 | 933 | 928 | Oct-21 | 460 | 470 | 465 | |
| Q4-21 | 924 | 934 | 929 | Q4-21 | 459 | 469 | 455 | |
| Q1-22 | 915 | 925 | 920 | Q1-22 | 450 | 460 | 455 | |
| Q2-22 | 892 | 902 | 897 | Q2-22 | 443 | 453 | 448 | |
| LME REBAR FOB TK | BUSHELING | |||||||
| Bid | Ask | Value | Bid | Ask | Value | |||
| Aug-21 | 680 | 690 | 685 | Sep-21 | 637 | 647 | 642 | |
| Sep-21 | 690 | 700 | 695 | Oct-21 | 637 | 647 | 642 | |
| Oct-21 | 685 | 695 | 690 | Nov-21 | 640 | 650 | 645 | |
| Q4-21 | 683 | 693 | 688 | Q4-21 | 637 | 647 | 642 | |
| Q1-22 | 675 | 685 | 680 | Q1-22 | 618 | 628 | 623 | |
| Q2-22 | 642 | 652 | 647 | Q2-22 | 615 | 625 | 620 | |
| US HRC USD/short ton | NWE HRC EUR/metric ton | |||||||
| Bid | Ask | Value | Bid | Ask | Value | |||
| Aug-21 | 1875 | 1885 | 1880 | Aug-21 | 1138 | 1148 | 1143 | |
| Sep-21 | 1931 | 1941 | 1936 | Sep-21 | 1090 | 1100 | 1095 | |
| Oct-21 | 1857 | 1867 | 1862 | Oct-21 | 1077 | 1087 | 1082 | |
| Q4-21 | 1757 | 1767 | 1762 | Q4-21 | 1025 | 1035 | 1030 | |
| Q1-22 | 1563 | 1573 | 1568 | Q1-22 | 949 | 959 | 954 | |
| Q2-22 | 1408 | 1418 | 1413 | Q2-22 | 856 | 866 | 861 | |