Ex-India hot rolled coil (HRC) trade has been limited to sporadic deals seen in the past week in the Southeast Asian region and Europe, though at discounts, while trade activity in the Middle East has been at a standstill owing to the renewed conflict in the region, SteelOrbis learned from trade and industry circles on Tuesday, July 21.
The SteelOrbis reference price for ex-India HRC stands at $485-575/mt FOB early this week, down by $5/mt on average from the level seen late last week.
There have been reports from the market that an eastern India-based mill reported a sale of 20,000 mt for Vietnam for August shipment at $485/mt FOB, while the previous negotiations for this destination were at $490/mt FOB at the lowest. This price translates to $515-518/mt on CFR basis, though “if we ask mills, their targets are at $520-530/mt CFR for 3 mm,” an Indian mill said.
There has been a rumor about negotiations at $475-480/mt FOB ($510/mt CFR at the highest), according to some in trade circles, but this has been denied by most market sources, including those in Vietnam, as the price has been assessed as being too much on the low side.
Similarly, another large mill reported a sale of 20,000 mt for delivery to Rotterdam at $575/mt FOB, also lower than $580-590/mt FOB in some previous negotiations earlier this month, the sources said.
According to trade circles, more Indian mills were heard to be in sales negotiations in the EU market, but even though “bookings to the EU are done at around $630-640/mt CFR, the fourth quarter quota is almost full,” another Indian source said.
“Indian HRC exports are expected to remain confined to small volumes with wide variations in achievable prices depending on destinations. We see a better response from EU buyers as they become more familiar with the country-specific quota framework. But overall ex-India prices will remain under pressure and workable prices are unlikely to be above $500/mt FOB in Asia and $580/mt FOB in Western markets,” a representative of an Indian mill said.
