Indian hot rolled coil (HRC) exporters have continued to push for higher prices in key overseas markets, but trade has been limited amid a combination of low availability of exportable volumes and the difference in valuations between sellers and buyers, particularly in the Asian region, SteelOrbis has learned from trade and industry circles.
Ex-India SAE1006 HRC prices from mills are at $860-870/mt FOB with the midpoint at $865/mt FOB, up by $5/mt on average from the range $840-880/mt FOB seen last week.
The sources said that there are estimations that mills have shipment commitments for at least 1.1 million mt for February and March and, with robust domestic sales, several mills have very limited allocations for export for April.
Under these circumstances and in the absence of pressure from inventories, Indian mills are seeking higher prices of over $850/mt FOB.
A few deals by Indian mills were done to the Middle East over the past week. Around 25,000 mt of SAE1006 HRC were sold to the UAE at $910/mt CFR. In addition, 10,000 mt of coils changed hands at $907/mt CFR Saudi Arabia. These deal prices translate to around $860-870/mt FOB, according to market sources.
Also, negotiations with customers in Turkey were held at $920-930/mt CFR over the past week, with sources saying that a deal was done by one of the main Indian mills at this level, corresponding to around $870-875/mt FOB. New offers for ex-India HRC to Turkey have been reported at $940-950/mt CFR or $890-895/mt FOB.
New offers from India to Vietnam were announced at $900-910/mt CFR at the lowest, which is equivalent to $865-875/mt FOB after an increase in freight at this destination to $35/mt, from $30/mt seen in early February. Buyers are not ready to accept higher levels so far, focusing on local purchases after Formosa Ha Ting announced its local price level for non-skin passed SAE1006 at $840/mt CFR. “Due to the low price of Formosa in the coming days, Vietnamese importers will be quiet,” a seller source said.
After significant sales to the EU earlier this month, Indian mills have been cautious, with offers to this destination hardly below $950/mt CFR.
“The lack of trades is not an actual reflection of the market which is seeing a rise in activity after business activity gained momentum with the end of the holiday in China. It is a question of acceptable valuations for buyers and sellers. Indian mills are well placed on the back of strong domestic sales to push for higher export prices,” a source at a government-run steel mill said.
“It is only a matter of time before current ex-India prices are consolidated at higher levels in deals. The Buyer-seller equilibrium will also settle higher in the Asian market as soon as sentiments are bullish,” the sources said.