This week, talk about a sale of 10,000 mt of ex-China HRC to India emerged in the market, at a price of $610/mt CFR, which is assessed being high compared to Chinese offers and sales to other trade destinations. SteelOrbis has polled market sources and has confirmed that, even though the deal was in fact done, it does not signal an improvement in the market.
Some market sources from India said that they assess this price as being too high, if we are talking about base commercial SS400 or SAE1006 HRC. “This price is too high. It does not make sense since it is higher than local prices,” an Indian mill commented. “This could either be some earlier cargo arriving right now or is for some special grade,” another Indian source said. At least two other sources said this price makes sense if it is for SHPC 1 mm pickled and oiled material.
For commercial grade Chinese HRC, market sources estimate the price range for India at $563-580/mt CFR. “Chinese prices are at a discount to local prices, but generally imports are limited. If someone bought for prompt shipment or a higher grade, it doesn’t mean the market is better,” a trading source said.
Chinese commercial grade (3mm) HRC has been on offer at $580-590/mt CFR to the GCC and North Africa, while thinner material (1.2 mm) has been priced at $610-620/mt CFR. Indian market sources agree that Chinese prices for their market should not be higher and should even be lower than those to MENA customers, as “there is almost no demand for 3 mm standard import HRC here”, a source said.
