Indian integrated steel mills have continued to push hot rolled coil (HRC) prices up over the past week amid sustained interest among EU buyers who have accepted higher valuations and the shortage in the market.
Ex-India HRC prices increased first by $20/mt compared to last week to $680-690/mt FOB and then a fresh deal price level reached $715-720/mt FOB, supported by higher prices and persisting demand from buyers from the EU.
“Most HRC offers we are hearing in international markets are very strong, but there are wide variations too. We hear ex-Russia HRC offers at the $700/mt FOB mark, while ex-China offers are around $670-680/mt FOB. We don’t know where the market is heading,” an official at an eastern Indian based integrated steel mill said.
“Indian exporters are bullish, but not under compulsions to push higher volumes overseas. Domestic demand continues to rise and most steel mills' realizations from local sales are still 6-10 percent higher than exports excluding premiums. But still the emergence of strong bids from EU buyers is a strong positive for all local producers and the latter are willing to accept higher valuations compared to the Southeast Asian market,” he added.
One of the largest Indian flat steel producers has managed to sell a HRC cargo to Italy at €620-625/mt CFR, which is equivalent to $715-720/mt FOB, excluding freight. Taking into account successful sales, some rare offers to Europe from India have started to be heard at $740/mt FOB.
Before this, a few bookings were completed to traders at about $680-690/mt FOB.
