Ex-India hot rolled coil (HRC) prices have continued to achieve higher levels, but gains are uneven with realizations improved most from sales in the EU region and with several mills optimistic of achieving the $700/mt FOB mark in the short term, SteelOrbis has learned from trade and industry circles.
The reference price for ex-India SAE1006 2 mm HRC has reached $650-680/mt FOB this week, up $20/mt on the lower end and $10/mt from the higher end over the past week. The most significant of buoyant export trades were at as high as $680/mt FOB to the EU.
At least two mill officials confirmed having submitted new offers for April shipment at the $700/mt FOB mark or above, though they conceded it was too early to claim that such offers could be successfully converted to supply contracts as spot sales negotiations had just commenced over the past two days.
However, one of the mills confirmed a trade for 20,000 mt for Rotterdam for early March shipment at $670/mt FOB. Moreover, the tradable level had already hit $680/mt FOB by the end of last week, and some new offers have been reported from India to Europe at $715-720/mt FOB.
An eastern India-based integrated mill has reported sales of 10,000 mt with a Nigeria-based buyer at $655/mt FOB, while a Gujarat-based mill has concluded a sale for 25,000 mt for Singapore for March at $645/mt FOB, market sources said. Prices in these contracts have already been assessed as “a bit old, as now mills will want more,” a trader said.
The latest offers to the UAE were reported at $690/mt CFR (translates to $655-660/mt FOB) last week, but this week are likely to target above $700/mt CFR, waiting for a strong return by China next week.
“We hear that ex-China offers have been exhausted for March. Indian mills are among the few that can confirm March shipments, particularly to the EU region, and hence sellers are able to secure improved realizations,” a source at a large Indian mill said.
“The emergence of EU demand is a strong positive for Indian sellers and we assess that January-March export allocations are likely to be fully booked over the next week, providing further support for the price gains,” he said.