Ex-India HRC prices fall further amid slack local demand, weaker currency

Monday, 23 March 2020 16:58:45 (GMT+3)   |   Kolkata
       

India’s large integrated steel mills have slashed hot rolled coil (HRC) export prices during the past week, reacting to the rapid depreciation of the local currency against the US dollar and trying to push volumes overseas.

According to market sources, the workable level for export sales from large integrated steel mills has dropped by $15/mt over the past week to $430-460/mt FOB. Official offers from Indian steelmakers have been voiced at $440-445/mt FOB at the lowest, but “the prices are volatile and many unofficial offers are floating,” one of the major producers said. Some traders have been offering at even lower levels, trying to find orders and to sell Indian HRC in short position.  

The rupee has weakened beyond the INR 75 to the dollar mark, which has supported the downtrend. The sources said that during the past week the Indian rupee touched a 16-month low at INR 75.20 to the dollar, while on Monday the currency hit an all-time low of INR 76.15 to the dollar, enabling local exporters to aggressively price their HRC exports, passing on the benefits of the weak currency to buyers.

The sources said that Indıan suppliers have been ready to negotıate at $465-470/mt CFR ($445-450/mt FOB) with customers in the Gulf and some tonnages for up to 20,000 mt have been sold to this destination.

However, most buyers from key export markets have stayed away from responding to offers. Buyers in Vietnam were hearing official offers at $460/mt CFR ($440/mt FOB) from Indian mills and have been in negotiations at about $450/mt CFR ($430/mt FOB), but there has been no information about transactions. Traders have been testing the market with offers of ex-India HRC at $435-440/mt CFR, trying to sell in short position, feeling that prices will go down further. “China’s prices [from mills for SS400 HRC] are already at $440/mt FOB, so $440/mt CFR can be acceptable,” a trader from Vietnam told SteelOrbis.

Sources said that Tata Steel has decided to cut HRC production from its European steel mills in view of falling demand in the region and instead cater to its international buyers in other regions from its Indian steel plants.


Similar articles

European HRC prices keep falling, demand still shows signs of fatigue

28 Mar | Flats and Slab

Vietnam’s Hoa Phat and Formosa seek AD investigation on Chinese HRC

28 Mar | Steel News

Major steel and raw material futures prices in China - March 28, 2024

28 Mar | Longs and Billet

UAE’s HRC market still sluggish, offers from India fall slightly

27 Mar | Flats and Slab

Import HRC prices in Vietnam retreat again due to slump in China

27 Mar | Flats and Slab

Vietnam’s Hoa Phat produces nine millionth mt of HRC

27 Mar | Steel News

Major steel and raw material futures prices in China - March 27, 2024

27 Mar | Longs and Billet

HRC consumption in Mexico up 30.6 percent in January

26 Mar | Steel News

Local HRC prices sink further in Turkey

26 Mar | Flats and Slab

Import HRC prices to Pakistan decline in new ex-China offers, other suppliers avoid discounts

26 Mar | Flats and Slab