Indian hot rolled coil (HRC) exporters have reduced their prices slightly, but the decreases have been insufficient to drive any sales amid deepening bearish market conditions across the Asian and Gulf regions, as SteelOrbis has learned from trade and industry circles. The competition with Chinese and other Asian HRC suppliers has been too intense for Indian mills, who have been selling at small discounts in their local market, where prices are still better.
Ex-India HRC prices are down by $10/mt over the past week to the range of $550-570/mt FOB, but very few offers have been reported at this level and again there have been more competitive offers for buyers at almost all outlets, and so no new deals have been reported. In general, Indian mills have also been inactive ahead of the festival season.
According to the sources, at least two Indian mills have put forth final offers to Vietnam at $610/mt CFR at the lowest acceptable level for sellers, too high even for negotiations with the deal price level in Vietnam already at $570/mt CFR. There is talk that one Indian mill can give $585-595/mt CFR in negotiations, which is also unworkable.
“Mills’ reduction in offers is largely notional as no seller is willing to sacrifice higher domestic realizations by aggressive sales in overseas markets. Bid levels are too low in most key destinations,” an official at a private mill said.
“With the return of China, there are too many sellers in Asia chasing too few buyers. We don’t think this is going to change in the short and medium terms. We even hear deals in some Asian markets at below $580/mt CFR. Hence, our own export allocations are very small,” he said.
In Europe, last week an offer from India was at €670/mt CFR, while buyers could find cheaper ex-Japan and ex-Indonesia material.