Global HRC market heats up amid potential anti-dumping inquiry
Global HRC export import market is facing headwinds with many reported deals at discounted prices. Benchmark Viatnemese HRC import market, which had climbed to USD 1060 per tonne CFR Veitnam in Week 20 (May18-23), has turned extremely bearish with latest deals reported at as low as USD 850-860 CFR Vietnam.
The prospect of imposition of export duty from 1 August has sent Russian steel mills in overdrive and they are reported to have booked about 100KT HRC at USD 850-880 CFR Vietnam for July shipment. Some Chinese exporters are also reported to be offering HRC at USD 880-920 CFR Vietnam.
But the Viatnamese HRC import market remains dull amid COVID 19 slowdown and uncertainly over the export tax announcement in China. However other suppliers Japan. India and South Korea etc are not in a hurry to follow the downtrend. While offers from India were heard at USD 950-980 CFR, Japanese and South Korean suppliers are still offering at above USD 1,000 per tonne CFR.
Incidentally, Indian HRC allocation requests being nearly twice as much as the amount of the individual quota set by EU for the new quarter has prompted Eurofer to take notice in sure of Indian HRC import and it may request for opening of an antidumping duty investigation into Indian HRC import. According to a report, about 333KT Indian HRC was awaiting clearance on 1 July 2021 as against quarterly quote of about 169KT.
Eurostat recently revealed that “In total India, supplied 665,623 tonnes of HRC to the EU-27 in January-April 2021, up 190% and 52% compared to the same period of 2020 and 2019, respectively.”
But HRC prices in US & EU remain at elevated levels as follows:
North Europe – EUR 1150 (USD 1365) per tonne EXW
US – USD 1770-1785 per short tonne EXW
US – USD 1560-1570 per short tonne DDP
