Indian integrated steel mills have continued to focus on the European Union (EU) market, maintaining higher export prices of hot rolled coil (HRC), but very few deals have been reported over the past week with buyers in Asian markets largely staying away from committing bookings.
Ex-India HRC prices have reached $730-780/mt FOB, while the higher end of the range has surged by $30/mt since last week on the back of the deal price level to Europe. The lower end of the range is showing the lowest possible price for the Asian market from major Indian suppliers.
“Too high prices and low export allocations are keeping ex-India HRC exports at low levels. Buyers are staying away from high valuations, while sellers are not keen on adjusting offers in view of strong sustained domestic demand and no compulsions for overseas shipments,” an official from an Indian mill said. “With HRC prices being pushed up by EU steel mills and buyers there facing supply constraints, Indian steel mills are finding achievable prices higher in this market compared to the cautious mood in the Asian region,” he added.
Market sources said that a parcel of Indian HRC from a major mill has been traded at $815/mt CFR Bilbao, which translates to around $780/mt FOB. In addition, CRC from the same producer has changed hands at $945/mt CFR. Another major exporter rejected a bid at $815/mt CFR from Europe last week, offering at around $830/mt CFR or $795/mt FOB. Offers for Indian CRC to Antwerp have been heard at $950/mt CFR.
To the Asian market, the latest offers were reported from $750/mt CFR to $770/mt CFR, which is the indicative level, as it is low for sellers but too high for Vietnamese customers. A deal for 30,000 mt of Indian HRC was reported at $740/mt CFR or $715-720/mt FOB a week ago.