Regional HRC prices rise on demand-supply tightness
China-Korea FoB export prices rise by 5-12% WoW
* Regional Steel prices moved up further in response to tightness in Steel demand-supply, post production curbs in China and continuing global demand surge.
* As per Steelmint, regional export prices increased by 5-12% WoW. As a result, regional export prices are higher by 22-25% MoM.
* Korea export FOB prices have risen by 12% WoW (20% MoM) to USD955/t (CFR India – USD995/t). Domestic HRC prices, at INR60,500/t, trade at a discount of INR15,000/t to the landed cost of imports from Korea (INR5,000/t last week). China export FoB prices too increased 5% WoW to USD875/t.
* HRC export FoB India has increased 12% over the last two weeks to USD927/t, which is INR9,000/t higher compared to domestic realization, making exports lucrative to domestic mills.
* We, thus, expect domestic mills to further increase HRC prices in Apr’21.
NMDC raises iron ore price by INR500-1,100/t
* As per Steelmint, NMDC has again raised iron ore prices by INR500/INR1,100 per tonne to INR5,060/INR6,950 per tonne for fines/lumps. This hike comes over and above the hike of INR250/INR500 per tonne taken in early Apr’21.
* Higher iron ore prices in Odisha have led NMDC to hike iron ore prices.
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