FOB China HRC
The index was flat yesterday (24.8.21) at US$910/t, MTD US$923.75/t.
People’s Bank of China governor Yi Gang said in a statement that the bank will adjust its credit and loan polices to support small and mid-sized companies. The bank will “increase cash supply modestly to help China’s economy to run within the expected range. A few Chinese mills were still offering in the market, maintaining offers at $940-1,000/t fob for SS400 HRC. Some traders were inviting bids at an equivalent of $880-910/t fob for coils produced by north Chinese mills, but received no buying interest.
Traders cut offers by $10/t to $890-900/t cfr Vietnam for SAE1006 grade coils produced by two Indian mills. The market has been inundated with Russian mill coils that are workable at $860/t cfr Vietnam. But spot trade is frozen as Vietnam’s domestic markets are stalled with customers focused more on safety measures from Covid-19 than about construction. Vietnamese mill Hoa Phat is struggling to sell cargoes at $900/t cif Vietnam too. Those prices were much lower than offers at $970-990/t cfr Vietnam for Chinese coils and $1,040/t cfr Vietnam for Japanese coils. (Argus)
EU HRC
European hot-rolled coil prices continued to come under pressure today from cheaper import offers and slow demand, although a lack of independent pickling capacity curbed appetite among some buyers.
Lower automotive production was dragging down demand, and some carmakers have indicated that the semiconductor shortage could be at its most severe in October-December. One mill source said he was anticipating a 10-15pc reduction in steel demand from the automotive sector, because of component shortages. Mill sources are signalling that the slowdown will allow them to catch up on backlogs, and not actually eat into pricing. Others are concerned that weaker automotive appetite could free up capacity, especially as more production is coming back on line in October-November, and cause their stocks to depreciate.
A Russian steelmaker reportedly offered bigger coils at €950-960/t fca Antwerp to one German buyer, around €100/t or more below its latest offer to the general market. But others still said it was at higher levels, around €1040/t fca, and that the lower prices only applied to smaller coils.
A German cold-roller was offered Turkish material at around €920/t cfr, while another Turkish mill was willing to discount to $950/t fob, according to sources. The German buyer said it was adequately stocked, despite ongoing mill backlogs, and would not buy at such levels. Indonesian material was offered at around €950/t cif, while a Saudia Arabian producer was offering at around $970/t fob. (Argus)
US HRC
The S&P Global Platts TSI US hot-rolled coil index was calculated at $1,909.50/st EXW Indiana Aug. 24, unchanged from Aug. 23.
A Southern mill source reported recent transactions at $1,900/st for September production. No other bids, offers or transactions were heard. (Platts)
| Indices | Price | Change | MTD |
| Platts TSI HMS 1/2 80:20 CFR Turkey ($/mt) | 449.00 | 1.00 | 456.54 |
| Steel Rebar FOB Turkey ($/mt) | 675.00 | 0.00 | 692.53 |
| Argus HRC NW Europe (€/mt) | 1134.50 | -3.25 | 1143.41 |
| Argus FOB China HRC ($/mt) | 910.00 | 0.00 | 923.75 |
| 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 | 1924 | 1934 | 1929 | Sep-21 | 1093 | 1103 | 1098 | |
| Oct-21 | 1835 | 1845 | 1840 | Oct-21 | 1077 | 1087 | 1082 | |
| Q4-21 | 1725 | 1735 | 1730 | Q4-21 | 1056 | 1066 | 1061 | |
| Q1-22 | 1541 | 1551 | 1546 | Q1-22 | 966 | 976 | 971 | |
| Q2-22 | 1400 | 1410 | 1405 | Q2-22 | 856 | 866 | 861 | |