Good Morning,
FOB China HRC
The index jumped by $64/t on Monday (10.5.21) to US$1014/t, MTD US$946.17/t.
Shanghai mainstream HRC ex-warehouse prices rose by Yn560/t to Yn6,620/t yesterday on heated market sentiment and active trade. Chinese mills are active in pushing up their export offers to follow the domestic price trend. Three major Chinese mills hiked offers to $1,040-1,080/t fob China for SS400 HRC. Another large Chinese mill was mulling to sell SS400 HRC at around $1,000/t fob China, but it may re-consider lifting prices further amid the fast-rising trend, participants said. Most seaborne buyers were shocked by Chinese offers, keeping silent without any bids.
HRC prices in Vietnam market witnessed a similar upward trend. Indian SAE 1006 grade coil was reported to have been sold around at $1,035/t cfr Vietnam last week. Offers kept rising to $1,045-1,104/t cfr Vietnam for coils from China and India. Vietnam-based Formosa Ha Tinh was heard to be mulling to increase offers to follow the upward trend. (Argus)
Turkish Scrap
US sellers hold back from offering as Baltic sellers target above $500/mt CFR
Turkish scrap-iron ore ratio hits all-time low of 2.18
Turkish Deepsea import ferrous scrap prices continued to climb sharply, reaching a fresh 2021 high, as buyers raised workable levels amid a bullish Chinese market, sources said. S&P Global Platts assessed Turkish imports of premium heavy melting scrap 1/2 (80:20) May 10 at $500/mt CFR, up $10/mt on day.
The index is now at its highest level since Jan. 17, 2011, when it was at $504/mt CFR. The Platts index record high was at $510/mt CFR on Jan. 10, 2011. “These prices are high [$500/mt CFR] but look workable – iron ore is crazy now,” one Turkish mill source said. Platts assessed the 62% Fe Iron Ore Index at a record high of $229.55/dry mt CFR North China on May 10, up $16.80/dmt from May 7.
A second Turkish mill source also cited an indicative tradable value at $500/mt CFR for premium HMS 1/2 (80:20). A third mill source cited Baltic-origin offers for HMS 1/2 (80:20) at $500/mt CFR minimum and $503-$505/mt CFR. EU-origin offers were also cited at $500/mt CFR and above. (Platts)
US HRC
The S&P Global Platts TSI US hot-rolled coil index was calculated at $1,514.50/st EXW Indiana May 10, up $13 from May 7.
A buyer was offered 750 st at $1,510 and said he would most likely take the price. A mini-mill noted recent sales were at $1,500-$1,540 for their limited June availability. Another deal was concluded at the high-water mark of $1,600 for 550 st from an integrated mill but the deal fell outside Platts methodology to be in the volume-weighted average.
An offer at $1,550 for 120 st was not included in the index as the buyer was unable to secure the customer’s order with that price and did not place the order. (Platts)
| Indices | Price | Change | MTD |
| Platts TSI HMS 1/2 80:20 CFR Turkey ($/mt) | 500.00 | 10.00 | 479.15 |
| Steel Rebar FOB Turkey ($/mt) | 715.00 | 15.00 | 691.50 |
| Argus HRC NW Europe (€/mt) | 1049.50 | -0.25 | 1043.60 |
| Argus FOB China HRC ($/mt) | 1014.00 | 64.00 | 946.17 |
| LME HRC FOB TIANJIN CHINA USD/mt | LME HMS 80:20 CFR TK | |||||||
| Bid | Ask | Value | Bid | Ask | Value | |||
| May-21 | 995 | 1005 | 1000 | May-21 | 525 | 535 | 530 | |
| Jun-21 | 1025 | 1035 | 1030 | Jun-21 | 555 | 565 | 560 | |
| Jul-21 | 1020 | 1030 | 1025 | Jul-21 | 555 | 565 | 560 | |
| Aug-21 | 1015 | 1025 | 1020 | Aug-21 | 550 | 560 | 555 | |
| Q3-21 | 1000 | 1010 | 1005 | Q3-21 | 550 | 560 | 520 | |
| Q4-21 | 918 | 928 | 923 | Q4-21 | 515 | 525 | 520 | |
| LME REBAR FOB TK | BUSHELING | |||||||
| Bid | Ask | Value | Bid | Ask | Value | |||
| May-21 | 745 | 755 | 750 | Jun-21 | 620 | 630 | 625 | |
| Jun-21 | 805 | 815 | 810 | Jul-21 | 655 | 665 | 660 | |
| Jul-21 | 795 | 805 | 800 | Aug-21 | 685 | 695 | 690 | |
| Aug-21 | 790 | 800 | 795 | Sep-21 | 680 | 690 | 685 | |
| Q3-21 | 788 | 798 | 793 | Q3-21 | 680 | 690 | 685 | |
| Q4-21 | 742 | 752 | 747 | Q4-21 | 665 | 675 | 670 | |
| US HRC USD/short ton | NWE HRC EUR/metric ton | |||||||
| Bid | Ask | Value | Bid | Ask | Value | |||
| May-21 | 1514 | 1524 | 1519 | May-21 | 1077 | 1087 | 1082 | |
| Jun-21 | 1625 | 1635 | 1630 | Jun-21 | 1107 | 1117 | 1112 | |
| Jul-21 | 1638 | 1648 | 1643 | Jul-21 | 1057 | 1067 | 1062 | |
| Aug-21 | 1629 | 1639 | 1634 | Aug-21 | 1025 | 1035 | 1030 | |
| Q3-21 | 1624 | 1634 | 1629 | Q3-21 | 1027 | 1037 | 1032 | |
| Q4-21 | 1475 | 1485 | 1480 | Q4-21 | 943 | 953 | 948 | |