Ex-India hot rolled coil (HRC) prices have been maintained at the same levels as last week, but, given uncertain global market conditions, the uncertain outlook and robust margins from domestic sales have prompted most sellers not to push overseas sales.
Specifically, ex-India HRC have remained at $590-620/mt FOB, the same as last week, while some sellers’ price ideas have continued to be voiced at $620-650/mt FOB. According to sources, the differential between ex-India prices and domestic prices continues to widen, making exports almost unviable, and the disparate outlook in key overseas markets has added further disincentives for pushing exports at the current acceptable prices.
Sources said that an eastern India-based integrated mill is heard to have commenced negotiations for 5,000 mt for delivery to Antwerp starting at a price of $690/mt CFR, but neither the seller nor knowledgeable market participants could confirm if any deal was concluded or not.
“Prices are improving in the Asian region, but not significantly to offset the advantages of selling domestically. For example, in Asian destinations the acceptable price is still below the $600/mt CFR mark, not sufficient incentive for Indian mills to conclude a deal. Europe continues to remain quiet even after the holidays and there are very few enquiries arriving here,” a source at Jindal Steel and Power Limited told SteelOrbis.
“Some mills which were under maintenance are back in production. But there is no pressure from inventories and higher supplies are all being absorbed in the market. There is no pressure on mills to increase export allocations next quarter (October-December) and exports will continue to remain a function of market maintenance by mills concluding nominal-volume deals at nominal margins,” the sources said.