Ex-India hot rolled coil (HRC) export prices have continued to edge up on the back of stronger buying interest in key Asian and Middle East markets, and sellers have increased offer volumes overseas given the slack domestic demand, SteelOrbis has learned from trade and industry circles.
Ex-India HRC prices have increased to $910-1,000/mt FOB, with the lower end of the range up $30/mt over the past week, corresponding to the latest sales to Asia, while the higher end is stable for now. Bookings to the Middle East were concluded at prices in the middle of the range.
The tradable price level for buyers in the EU has been reported at $1,000-1,050/mt FOB, while some offers have surged to close to $1,100/mt FOB, but no deals have been heard in the market as the EU buyers are still awaiting the new import quotas for Indian origin material to kick in. Two officials at domestic steel mills said that export quotas for ex-Indian HRC to enter the EU market were completely exhausted during the first two weeks of April, while the wait for new quotas to kick in could become longer with reports reaching India that the EU is considering extension of safeguard quotas beyond June and this would further support higher prices.
“The key to Indian sellers increasing prices has been the robust revival in buying from Vietnam and the ready acceptance of higher prices,” an official from ArcelorMittal Nippon Steel Limited (AMNS) said.
“Not only are higher prices finding acceptance in Asia, buyers are increasing average tonnage bookings too. We feel that there is a strong upside potential to increase prices to levels of $1,000/mt FOB, in line with offers for the EU if the current uptrend is sustained in the coming month,” he added.
Reflecting strong buying from Vietnam, two deals of 30,000 mt each for June shipment were done at around $915/mt FOB last week, sources said. This level corresponds to $950-955/mt CFR Vietnam. The new target price level of Indian mills is $970-980/mt CFR or $935-940/mt FOB.
A western India-based integrated steel mill has also concluded a deal for 40,000 mt with an Asian buyer for May-June shipment at a price of around $910-915/mt FOB, the sources added.
A sale of 30,000 mt of Indian coils was also heard to the UAE at $985-990/mt CFR last week, translating to $950-955/mt FOB. Another booking is under negotiation at the moment.