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|FHS's Markup Pushes HRC Price for Apr Shipments Up Even Further|
According to a source, the market price of hot-rolled steel coil (HRC) for April shipments is likely to go up even further after Vietnam's Formosa Ha Tinh Steel Corporation (FHS) raised recently its domestic HRC price for April shipments by $40 (in the dollar). Chinese mills, which have been conducting negotiations week by week, are expected to offer another $10 markup next week.|
Driven by Chinese mills' markup, the HRC price in remote regions such as South America is on a steeper increase than Asia. The price in the former has reportedly reached $550 CFR, while the domestic HRC price in Turkey is said to be $570 per ton, an increase of about $100 from the year-end of 2018.
The FHS price in Vietnam is about $530 after a $40 markup. FHS also realized a $15 markup for March shipments, and combined, its total markup has reached $55, offsetting the substantial markdown offered at the beginning of the year. Chinese mills are expected to start offering a price of $540 CFR or above. The current momentum is so strong that the mills are likely to request a price of $550 or above in the week after next, whether the expected offer price of $540 is accepted or not.
As a result, for April shipments, the market price in not only remote regions such as Latin America but also Asia is highly likely to be at a $550 CFR level. In South America, Brazil's CSN plans to revamp its blast furnace in June, so does Gerdau. ArcelorMittal Brazil is also said to be planning blast furnace revamping in August. Accordingly, the supplies of slab will decline in June and onward. The price of Brazilian slab to the US has reportedly gone up to $510 CFR already. Russia's MMK has also set a 135-day period for blast furnace revamping in 2019. The HRC price is increasingly likely to rise in June and onward due to a shortage of slab.
|last modified : Thu 28 Feb, 2019 [10:25]|