Indian hot rolled coil (HRC) exporters have remained under pressure amid negative buying sentiments in the Asian market and concerns in the Gulf after the latest deals, SteelOrbis has learned from trade and industry circles.
Ex-India HRC prices have been in the range of $730-760/mt FOB versus $740-800/mt FOB last week, but now more offers have been heard at closer to the lower end of the range than last week. Moreover, some small discounts are still possible for Asian customers.
After a trade of an estimated 20,000 mt of ex-India HRC to Vietnam at $790/mt CFR, no new bookings have been confirmed. But sources said that offers are available at $780-810/mt CFR from a number of Indian sellers. One trader was in negotiations at $780/mt CFR for Indian material, but no contract has been disclosed as done yet.
As SteelOrbis reported earlier, much of the export activity was focused on revived buying interest from the Gulf region where Indian sellers were successful in securing higher realizations.
A western India-based integrated mill reported one trade for an estimated volume of 30,000 mt with a Saudi Arabia-based buyer at $750/mt FOB or slightly above.
Another mill has closed a contract to the UAE for 25,000 mt of HRC at $750-760/mt FOB, which, however, could not be confirmed by the time of publication.
“Gulf buying over the past week has kept Indian sales overseas alive. But sentiment is very negative in Asia with buyers in the key market of Vietnam still preferring local sourcing over imports. The revival of buying and prices in Asia is key to Indian mills being able to keep exports and reverse mounting inventories, which in turn are putting pressures on local prices,” a source at ArcelorMittal Nippon Steel Limited (AMNS) said.
“We are still assessing export allocations for the last quarter. There are too many uncertainties over price trends in Asia and how new tariff quotas in the EU will look in the New Year, when prices are also declining in the region and the appetite for imports might be limited,” the source said.
