Ex-India hot rolled coil (HRC) prices have been maintained relatively stable though sentiments have worsened this week in the face of intensified competition from China, while local sellers have not been pushing export sales in view of better margins in domestic sales and the expected tightening of supplies in the wake of mill shutdowns.
Sources said that ex-India HRC prices have remained at around $550-600/mt FOB, mainly the same as last week, but most offers submitted were not converted to deals, barring in a few exceptional cases for small tonnages.
According to the sources, a large eastern India-based mill is heard to have concluded a trade for 5,000 mt for delivery to Qatar at $560/mt FOB, though this information has not been confirmed by the time of publication. “There are almost no Indian offers heard in the market this week as all mills have some maintenance shutdowns planned in May,” a market insider told SteelOrbis.
“There is revival of ex-China sellers and there is strong competition. Indian exporters are officially dropping prices but only converting them into deals in exceptional cases. The next two months will see lower supplies from mills to the market and hence sellers will not be pushing deals overseas very much if the current low margins continue,” a source at Tata Steel Limited said.
“Buyers from Southeast Asia led by Vietnam are focusing solely on China. Europe is looking at some stability but local prices need to consolidate higher if Indian mills are to increase their presence there,” another source told SteelOrbis.
