Indian hot rolled coils (HRC) exports came to a near halt over the past week on combination of the pandemic situation in key markets like Vietnam, no import quota availability in the EU and easing of bids and bookings from emerging geographies seen earlier and even lower ex-India price failed to attract customers, SteelOrbis learned from trade and industry circles.
Ex-India HRC prices from a few mills were heard at $860-880/mt FOB, down from the general level of $880-920/mt FOB a week ago, but this did not meet buyers seeking valuations of less than $900/mt on CFR basis in Vietnam. Indian sellers were still holding offers to other markets like the UAE and the EU at higher level up to $920/mt FOB, but as there were no trades at this price and even negotiations were at pause, the higher level was not included in the general reference price range by SteelOrbis this week.
“In a few weeks back, the Indian HRC export market was supported by buying from Latin America and Africa. But these are new emerging markets and Indian sellers will have to deepen their engagements in these regions to develop it and ensure sustained interest of buyers,” a source in ArcelorMittal Nippon Steel Limited (AMNS) said.
“We hear of a lack of ex-China offers in the Asian region and this will be a positive for Indian exports going forward. Sellers are unwilling to reduce prices to conclude deals as mills have low inventories this month,” he added.
The only deal heard during the past week was by an eastern India based steel mill to an Asian trader at around $870-890/mt FOB, sources said. But this price level is already high for Vietnamese end-users, which are looking for prices at just below $900/mt CFR.
