While sentiments in the local hot rolled coil (HRC) market in India have remained rather negative, Indian HRC suppliers have been more active in exports over the past week, pushing for sales to the main trade destinations, including the Middle East, Europe and Vietnam. At the same time, ex-India HRC prices have continued to show wide variations as sellers have been adopting a dual pricing strategy to cope with tight competition with Chinese sellers in Asia and the Middle East, but maintaining higher price levels for sales in Europe.
More specifically, this week most ex-India HRC offer prices from mills have settled at $605-650/mt FOB, against $605-675/mt FOB last week. According to sources, higher offers at around $670-675/mt FOB have still been voiced by Indian sellers in Europe, but this level has been offered mainly by traders. In particular, ex-India HRC offers in Europe directly from mills have been estimated at $700/mt CFR, which translates to around $645-650/mt FOB, the same as last week. However, most European customers have been reporting higher offers for ex-India materials at around $740/mt CFR through traders including a 90-day delivery period. “Indian sellers have managed to sell sizable volumes to Europe in the last two weeks, but now new bookings are slower to the region due to the quota issue,” an Indian trader told SteelOrbis.
Furthermore, following numerous deals for ex-India HRC in the Middle East during the past two weeks at $625-635/mt CFR, a new deal for around 8,000-10,000 mt is reported to have been signed by an Indian mill at $630-635/mt CFR UAE for February shipment, which translates to around $600-605/mt FOB. However, according to sources, new offers from Indian sellers have been voiced at $640-645/mt CFR for March shipment. Besides, another tonnage of 20,000 mt of ex-India HRC for delivery to Bahrain has been heard at $605/mt FOB, though this information has not been confirmed by the time of publication.
Meanwhile, after a few sizable lots (more than 50,000 mt in total) were sold in Vietnam at $610-625/mt CFR during the past two weeks, this week ex-India SAE1006 HRC offers in Vietnam have been voiced at $625/mt CFR for March shipment, mainly the same as last week, with negotiations are underway, according to sources.
“Exports are looking up even though tariff quotas have been exhausted in Europe. Domestic EU prices are increasing and distributors are looking at import sourcing also. But Chinese offers are affecting the competitiveness of Indian exports in other destinations,” an official at Tata Steel Limited told SteelOrbis.