Indian integrated steel mills have stopped aggressively cutting hot rolled coils (HRC) export prices during the past week, while the volumes of trades fell due to ample supply at low prices in key markets, SteelOrbis has been informed on Monday, April 13.
Negotiations and deals for ex-India HRC from mills have been at $370-380/mt FOB depending on the destination. The lower end of the range reflects Indian sellers’ prices to Asia - their largest outlet, which have been the most important recently, sources have said. They have not changed compared to a week ago. The higher end of the range has declined by $10/mt, and has mostly been seen in negotiations in the Middle East and Europe: nevertheless, Indian suppliers have failed to book any visible tonnages to these destinations.
A contract for 30,000 mt of Indian HRC was signed at $390/mt CFR Vietnam last week, according to market sources. This price level corresponds to $370/mt FOB as the lowest. Moreover, there was an end-of-May delivery small contract by an eastern India-based steel mill for 4,000 mt at $372/mt FOB with an Asian trader. Limited trades in key markets in Asia were due to high competition with ex-CIS sellers, who provided much lower prices. But Indian mills have decided not to follow. They have already sold out for May shipment and will consider allocation for June shipment when the situation in the local market will become clearer.
A western India-based steel mill has concluded a contract for 7,000 mt with a buyer in the Gulf for thinner gauge HRC at $375/mt FOB, market sources said.
In Europe, offers of ex-Indian HRC have been mostly at $380/mt FOB or $410-415/mt CFR Antwerp, sources said but, due to logistical issues at the east coast ports in India and high competition with Turkish sellers, there have been no any visible sales reported so far.
“The value of the Indian rupee at a historical low of INR 76.30 to the US dollar is the only margin we are getting on our export realizations compared to export shipments in earlier months. But most steel mills are not looking at maximizing margins but just to keep cash flows positive at a time when steel mills are operating at lowest utilizations,” a manager at a steel mill said.
“The fall in export trades was also because local steel mills were tending to defer concluding contracts in view of the fact that China’s HRC prices were showing a recovery compared to early April,” he added.
