Indian hot rolled coil (HRC) exporters are still offering competitive prices in reaction to rising mill-end inventories, but buyers in the Asian region are yet to resume imports or prefer local sourcing, SteelOrbis has learned from trade and industry circles.
Ex-India HRC prices are in the range of $710-725/mt FOB, down from levels of $710-730/mt FOB a week ago, but bookings have been limited over the past week.
“Ex-India prices are very competitive vis-à-vis ex-China offers. But the fact that even close to $700/mt FOB is failing to attract buying indicates a lack of demand for imports across Asia,” a source at a western India-based flat steel-producing integrated mill said.
“We are keeping a close watch on small recoveries in local prices and are still to assess export allocations for the last quarter of this fiscal year. Some buyers are looking at acceptable valuations of around $730-740/mt CFR in the Asian market. But that is not an option for most sellers, at least not right now. More aggressive adjustments to offers will depend on end-of-January inventory assessment and the upside gain in local prices,” the sources said.
One Vietnamese trader said that, though offers are at $750/mt CFR from India, some mills are trying to invite bids at $740-745/mt CFR. But local customers are waiting for the release of new prices from Formosa first.
The only stray small-volume deal for 8,000 mt of ex-India HRC was reported by a Maharashtra-based mill with an Africa-based trading firm at around $710/mt FOB, market sources said.
In the UAE, Indian suppliers are holding offers at $760/mt CFR, but bids have come down further.
According to estimates of analysts and market participants, average inventory at mills increased about 10-12 percent in December, on month-on-month basis, with most large integrated mills reporting decline in December sales of flat products.
