Ex-India hot rolled coil (HRC) prices have increased further since late last week with some sellers being successful in pushing volumes at higher levels in Europe and the Gulf region, SteelOrbis has learned from trade and industry circles.
The SteelOrbis reference price for ex-India SAE1006 2 mm HRC has been settled at $700-740/mt FOB, versus $680-720/mt FOB, going up by $20/mt, as most mills have focused on higher realizations in Europe and the Gulf above $700/mt FOB, which has been assessed as the minimum workable level for most producers.
In particular, after concluding deals at $780/mt CFR to Europe, which translates to $710-725/mt FOB depending on the freight, mills have hiked offers further and manage to achieve even higher levels in the EU. In particular, a small tonnage from at least one Indian mill has changed hands at $800/mt CFR, or around $730-740/mt FOB. Offers from India to Italy are standing at $800/mt CFR with mills are ready to conclude more deals, while they are at least $10/mt higher in Spain, taking into account that other sellers are also bullish.
In the Gulf region, offers to the UAE have been coming mostly at $740-750/mt CFR, corresponding to $705-715/mt FOB. Though some sources report that one producer can give $720-730/mt CFR, this has not been confirmed as some market sources believe that this level is either old, or only from one mill which has a lower allocation for the European market.
Also, the sources said that a Gujarat-based mill reported a trade for a small volume for March shipment to Bahrain at $725/mt FOB. Also, one contract was rumored to the UAE at $720/mt FOB or $750/mt CFR.
The indicative level for ex-India HRC in Asia, Vietnam in particular, has moved to around $710-730/mt CFR or $700/mt FOB on average. “But to Asia there are no firm offers as such as buyers are not interested in these prices India can provide, so there is no sense,” an Indian exporter said.
“Indian mills have been able to secure high prices in the case of successive large-volume deals, indicating very positive global sentiments. The Gulf market has become particularly attractive,” a source at another smaller mill said.
“Our assessment is that most integrated mills have seen sharp drawdowns in export allocations available for the quarter ending March 31. Sellers are therefore holding back submission of offers. In view of the very positive conditions in most key destinations, we will not be surprised if May bookings start as soon as next week or so,” he said.