Indian hot rolled coil (HRC) exporters have faced continued pressure on their prices over the past week due to lower bids in key markets, but they have refrained from pushing overseas sales, instead focusing on the domestic market which is offering significantly higher realizations amid increased prices, tightening supplies and mills reducing export allocations, SteelOrbis has learned from trade and industry circles.
The tradable price level for ex-India HRC has been reported in the range of $560-580/mt FOB, lower than last week’s reference prices of $565-600/mt FOB. However, most mills are still insisting on levels hardly below $580-590/mt FOB and targets of $600/mt FOB are still seen.
The lowest official offer from one Indian mill in Vietnam was at $610/mt CFR, which translates to $580-585/mt FOB depending on the cargo size, but most bids for SAE1006 HRC are coming only at $580-590/mt CFR.
Some ex-India HRC offers to the UAE from a Maharashtra-based mill have been at $630/mt CFR, trade sources said.
Sources said that at least two offers were submitted in the EU region by a western India-based exclusive flat product integrated mill at $580/mt FOB, but no deal was concluded as bids were below the expectation of the seller.
“The differential between achievable export and local sales prices has widened further after the latest round of price increases by domestic mills. The latter are progressively lowering export allocations, also to ease the supply tightening in the local market,” an official at an eastern Indian private mill said.
“The local currency has plunged to a historical low but gains from the currency weakness are not sufficient to execute deals at a large discount to local prices,” he said.