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|HRC for Apr Shipments to Remote Regions: CFR$590 to S. America|
Japanese mills have begun their negotiations on hot-rolled steel coil (HRC) for April shipments to remote regions. All of the mills have only limited room for export, and intend to carefully select orders to accept. Some of the mills have reportedly begun their talks with South American customers with the offer price of $590 CFR.|
Among integrated steel mills in East Asia, South Korean, Taiwanese, and Japanese mills are quickly responding to the surging iron ore price and intend to shift the rising cost to the product prices as early as possible. Meanwhile, Chinese mills' stance remains unclear.
The aforementioned offer to South America was made with such an intention, with a $40-50 markup compared to March shipments. In the region, Brazilian mills have raised their slab prices to the US as a first move following the price rise of iron ore, and are expected to raise the HRC price next.
With March shipments, the HRC price in Asia was increased. In South America, on the other hand, the price declined for a short time. However, the latter now see the price remaining unchanged at a level above the price in Asia. Chinese mills are also preparing to offer a markup to South America, reportedly. It is also certain that Brazilian mills, which have scheduled revamping of blast furnaces and other facilities in May-June, will take an aggressive stance in their talks.
With all the mills across the globe likely to demand a markup to South America, Japanese mills are expecting a markup of at least $30 will be ultimately realized.
|last modified : Tue 05 Mar, 2019 [10:33]|