Continued aggressive ex-China offers in the Asian region have put pressure on Indian hot rolled coil (HRC) prices as exporters from India have not been competitive in Asia and instead have been focusing on small-volume deals to the Gulf and Africa, SteelOrbis has learned.
Ex-India prices are in the range of $820-830/mt FOB, stable on average from last week, but the range is narrower. Large mills have been seeing export price levels not below $830-835/mt FOB, lower than earlier in the month, but still high from most customers.
“Unless mills are facing strong pressures of rising inventory, concluding export trades at current prices is not viable as realizations in the local market even during the current correction phase are above the $900/mt mark on ex-works basis,” a source at a mill said.
“Alternative markets in the Gulf and Africa, though offering low-volume opportunities, are more viable than deep discount sales in Asia. This is a good time to develop alternative markets when domestic demand continues to remain strong and inventories comfortable,” the source said.
A booking for about 20,000 mt was received by an Indian integrated mill from a UAE-based buyer at around $830/mt FOB.
The exporter also reported a trade for around 15,000 mt from a Nigeria-based buyer at a lower price - $810/mt FOB or around that level, sources said, though most of the Indian mills have not been ready to provide such a price level, SteelOrbis has learned.
“Sentiments among buyers in Vietnam are in a negative cycle. Falling demand is steadily lowering acceptable import prices for January-February shipments. At the same time, the extended duration of the falling market is forcing buyers to defer deals in anticipation of further price reductions,” a Mumbai-based metal trader said.
“For local traders and mills, any deal below the $800/mt FOB is unviable, with bids being rejected,” the trader said.