Indian hot rolled coil (HRC) export activity has persisted at low levels with integrated steel mills unwilling to lower offer prices to meet acceptable valuations of Asian buyers and instead preferring to contract small volumes with EU-based buyers, where realizations are reported to be on the higher side, sources told SteelOrbis.
Ex-India HRC reference prices according to SteelOrbis’ data are at $745-805/mt FOB with a midpoint at $775/mt FOB, up by $22.5/mt on average from last week’s level.
This week, the price valuations in the Asian market have not been included in the reference price as steel mills from India have stopped submitting any offers to this destination. Sources said that the mood among buyers in the Asian markets, particularly in Vietnam, had turned negative and bids are coming at $680-690/mt on CFR basis for SAE1006 HRC maximum, not acceptable to Indian mills at all.
Sources said that, even though exports have been put on the backburner by most Indian steel mills, select producers like exclusive flat steel mills have still been focusing on sales to the EU. A deal from one of the major Indian mills was reported at $800-805/mt FOB or about $835-840/mt CFR to Italy. At the moment, offers to Europe from Indian mills are heard at $840-850/mt CFR, which translates to $805-815/mt on FOB basis. The volumes on offer have been modest.
In the Middle East, offers for HRC from India have been reported at $770-780/mt CFR, which translates to $745-755/mt FOB, according to sources. But “it is not workable for customers,” an Indian source said.
“Key producers in India, Japan and South Korea have very limited export allocations for the last quarter of the current fiscal year. This will continue to support HRC prices in most markets despite some bearish trends in parts of Asia, which will also abate. Prices in the EU and the US are on a strong uptrend,” an official from another mill said. “Indian exports will continue but for small volumes and only if the acceptable price of buyers is on the higher side. The ex-India FOB price target is now at $800/mt as every local producer has a lot of market options, local and overseas, in overall seller-dominated markets,” he added.
