Ex-India hot rolled coil (HRC) prices have consolidated at higher levels, but trade activity is down as most mills are fully booked for March shipment and a good part of April shipment allocations has also been sold out. Mills are mostly interested in bookings at higher levels only, while buyers in most major markets are reluctant to accept this, SteelOrbis has learned from trade and industry circles.
Ex-India SAE1006 2 mm HRC prices have consolidated to $700-750/mt FOB with the midpoint at $725/mt FOB, up by $15/mt over the past week. But if in the previous weeks mills agreed to sell at slightly below a $700/mt FOB mark, at the moment most sub-700/mt FOB offers have been completely pulled back by sellers.
But at the same time, according to the sources, deals at the higher end of the current price range have not been reported largely because sellers do not have volumes to confirm shipments for March and the first half of April, even though inquiries from Europe and West and North Africa have been seen to be rising.
Last week, 30,000 mt of HRC in total were sold by one Indian mill at $720-725/mt CFR to the Middle East, which translates to $690/mt FOB or slightly above. However, at the moment “I don't think there is much hunger for mills to sell even at $730/mt CFR to the UAE,” an Indian source said.
One undisclosed deal for Europe has been rumored at $800/mt CFR, the sources said, but offers have remained unchanged at higher levels of $810-820/mt CFR, translating to around $750/mt FOB.
Higher prices in Turkey may attract Indian HRC suppliers, according to sources. However, taking into account that Chinese and Taiwanese suppliers can offer prices $20-60/mt lower to Turkey compared to India, trading to this destination is halted for now. Indian offers to Turkey have been heard at $770-780/mt CFR, translating to $740-750/mt FOB.
The indicative price level for ex-India HRC to Asia has been reported at $720-730/mt CFR Vietnam, or around $700-710/mt FOB. But neither sellers nor buyers have been interested.
“Flat steel prices are firming up across geographies. Some supply chain issues are also fueling the uptrend. It is a strong sellers' market, particularly for buyers seeking early deliveries,” an official at an Indian mill said.
“But local producers are in a short-term bind to leverage the rising overseas markets. They don’t have many volumes available. And buyers are unwilling to accept higher prices for volumes below their requirements. They would rather look for alternative sourcing. Hence, we assess that sellers will benefit from buoyancy in the market from mid-April onwards,” he said.
