FOB China HRC
The index fell by $2/t yesterday (25.8.21) to US$908/t, MTD US$922.82/t.
Cisa member mills reverses early August Crude steel output cuts, increasing output by 4.6pc to 2.1379mn t/day over 11-20 August from 1-10 August. The output was still 1.1pc lower from a year earlier. There are no changes for major Chinese mills’ offers, but some traders are willing to receive orders at an equivalent of $880/t fob for SS400 HRC. That level is in line with Chinese domestic selling prices, allowing those traders to export at such a low price.
But no buying was induced as seaborne buyers could obtain coils much lower from countries including India and Russia and there are also no tax risks from those countries. Vietnam’s Covid cases hovered at above 10,000 per day. People are not in mood to make any business under such circumstance. (Argus)
EU HRC
Northwest European hot-rolled coil (HRC) prices slipped further yesterday, as lower import offers weighed on buy-side expectations.
Argus’ daily benchmark NW EU HRC index nudged down by €1.75/t today to €1,132.75/t, while the Italian index was static at €1,033.75/t.
A Russian steelmaker offered September production HRC at €955-965/t fca Antwerp. Some said this was for smaller coils, but buyers in discussions with the producer said it was for larger material. The mill had initially tried to rollover its offer at €1,080-1,090/t fca, so this was a substantial decline in its offer level.
Asian coil was offered into Antwerp at around €1,000/t fca, while Turkish offers were below this. Buyers in central and eastern Europe, as well as the north, were offered Turkish HRC at around €930/t cif including duties. Indian product was below this level, but with duties likely to be payable and sources expecting the country’s October-December quota to be oversubscribed very quickly.
One mill-tied distributor in central and eastern Europe was offered September production at €950/t cpt from a Romanian steelmaker, and there was an expectation that these cheaper prices would filter into lower levels in northwest Europe, especially with capacity returning to the market. (Argus)
US HRC
The S&P Global Platts TSI US hot-rolled coil index was calculated at $1,910.50/st EXW Indiana Aug. 25, up $1 from Aug. 24.
A service centre source indicated an offer at $1,940/st from a mini-mill for October production but decided to hold off on that. No other bids, offers or transactions were heard. (Platts)
| Indices | Price | Change | MTD |
| Platts TSI HMS 1/2 80:20 CFR Turkey ($/mt) | 447.50 | -1.50 | 457.62 |
| Steel Rebar FOB Turkey ($/mt) | 670.00 | -5.00 | 694.87 |
| Argus HRC NW Europe (€/mt) | 1132.75 | -1.75 | 1144.38 |
| Argus FOB China HRC ($/mt) | 908.00 | -2.00 | 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 | 1930 | 1940 | 1935 | Sep-21 | 1093 | 1103 | 1098 | |
| Oct-21 | 1840 | 1850 | 1845 | Oct-21 | 1077 | 1087 | 1082 | |
| Q4-21 | 1736 | 1746 | 1741 | Q4-21 | 1026 | 1036 | 1031 | |
| Q1-22 | 1549 | 1559 | 1554 | Q1-22 | 955 | 959 | 954 | |
| Q2-22 | 1405 | 1415 | 1410 | Q2-22 | 855 | 866 | 861 | |