Large Indian steel mills have maintained their hot rolled coil (HRC) export offers at $465-475/mt FOB for February shipment as local base price increases are expected in January and as there have been fresh bookings in such key markets as the European Union (EU) and Vietnam at slightly higher prices, SteelOrbis learned on Monday, December 23.
According to traders, an Indian increase in deal prices was supported by demand for ex-India HRC, particularly in key EU markets, in Italy, followed by bookings by buyers in Spain and France.
Demand from EU customers has increased since the middle of the month as they decided to restock before leaving the market for holidays. A leading Gujarat-based steel mill in west India reportedly concluded two HRC contracts with buyers in Italy and Spain for end-of-February delivery of 15,000 mt each, in the range of $452-454/mt FOB. The freight is assessed at about $35/mt.
At the same time, a Maharashtra-based steel mill reportedly concluded an end-of-February delivery contract with buyers in Italy at the lower end of the range at $450/mt FOB, but the volume in the contract could not be independently ascertained in the market, the sources added.
Ex-India HRC exports have been supported by some ongoing demand coming from Vietnam, though sales volumes are not high. An eastern India-based steel mill has concluded a contract for 20,000 mt for early March delivery with buyers in Vietnam at $455/mt FOB, which corresponds to $480/mt CFR, sources said.
As a result, deal prices for ex-India HRC prices have increased by $5/mt over the past week to $450-455/mt FOB.
