Indian flat steel export offers have firmed up across product segments during the past week and have contributed toward reversing the strong buying volumes seen earlier, traders said on Monday, May 6.
“I think that Indian flat steel exporters might have got their pricing strategy wrong by forcing increases in offers riding on buoyant volume trades seen recently. In fact, the hikes in offers might have pushed back buyers, as is evident from the sharp drop in trades concluded during the past week,” a Mumbai-based trader said.
“Indian exporters might have been falling in line with the slight hardening of ex-China flat steel offers. But by increasing ex-India offers, Indian commercial exporters seem to be losing the price competitiveness which had contributed to the upturn in overseas shipment volumes earlier,” the trader added.
Market sources said that, barring some activity in ex-India HRC deals to Vietnam and some shipment volumes to neighboring markets, buyers by and large have preferred not to respond to offers and are waiting for an adjustment in the coming weeks.
Ex-India HRC offers
Ex-India hot rolled coil (HRC) offers have hardened by $20/mt during the past week to $570/mt FOB, according to market sources.
The sources said that an aggregate volume estimated at 10,000 mt has reportedly been booked by large domestic steel mill for end-May delivery to Vietnam.
At the same time, a modest volume aggregating at 4,000 mt has been booked by commercial exporters for Nepal shipment, while another volume of around 5,000 mt has been booked by Bangladeshi buyers, the sources said.
Ex-India CRC offers
Ex-India cold rolled coil (CRC) offers have increased by $10/mt during the past week to $580/mt FOB, according to market sources.
However, barring some marginal volumes booked by buyers in Bangladesh from one Indian commercial exporter which were reported in the market, no significant volume trades have been reported, the sources added.
Ex-India plate offers
Ex-Indian plate offers have moved up by $10/mt during the past week to $615/mt FOB, according to market sources, who also stated that no trades have been reported in the market by either large domestic steel mills or commercial exporters.