Indian hot rolled coils (HRC) prices in the export market have slipped to below the $1,000/mt FOB mark over the past week, but most exporters have not pushed sales amid the deepening of the bearish mood among Asian buyers. At the same time, large Indian mills have not been very aggressive, trying to hold prices stable, SteelOrbis has learned from trade and industry circles.
Ex-India re-rolling grade HRC prices are at $980-1,000/mt FOB, with the lower end of the range losing $10/mt, while the higher end has slipped by $40/mt over the past week. This price level reflects the latest tradable price levels in major sales destinations. But no significant volume deal was reported in the market, with buyers seeking lower valuations, while sellers were giving greater importance to holding the price line instead of pushing deals.
A leading Mumbai-based trader said that reports received from a key market like Vietnam indicated a very pessimistic mood among buyers in view of the resurgence of the pandemic in the country and the renewed stringent measures imposed have been keeping buyers away from the market.
The traders said that no deals could be concluded over the past week, with Vietnamese buyers seeking valuations of a maximum of $950-970/mt on CFR basis, while Indian integrated steel mills have not been inclined to push deals at such lower realizations.
“There is differing assessment among buyers and sellers on whether prices have bottomed out. Buyers are awaiting a further fall. Local mills are not willing to discount deals,” an official from a steel mill said.
“We are continuously reviewing market conditions. Overseas shipments are important. But only at valuations favourable to us. We are willing to wait and watch for the right opportunities to emerge after a rebound,” he added.
Among the stray deals reported over the past week was a relatively small tonnage trade of 15,000 mt reported by an Odisha-based steel mill to Asia at $980/mt FOB, sources said.
Also, new offers for ex-India HRC to Turkey were at $1,030-1,040/mt CFR, down from $1,070-1,080/mt CFR a week before. The CFR level translates to $985-995/mt FOB and new deals are now excluded as prices are competitive.
