Indian flat steel exporters increased offers significantly during the past week but have been only limited bookings from markets in neighboring countries, traders said on Monday, March 4.
“Commercial exporters have largely been absent from the market, being reluctant to push volumes overseas in view of the appreciating trend of the Indian rupee against the US dollar. Also, most large exporting domestic steel mills have increased flat steel export offers to keep them in line with rising domestic steel prices but have faced buyers’ resistance in most key markets and negligible contract volumes,” a Mumbai-based trader said.
“It is true that flat steel export offers, particularly for ex-China material, have also firmed up during the past week, while Indian steel mills have not been interested in aggressively pushing volumes overseas as they are already enjoying steadily rising margins from domestic sales,” the trader added.
Market sources said that, due to the rupee appreciating to INR 70.9 against the dollar, commercial exporters are cautious about making bookings due to tighter margins.
Ex-India HRC offers
Ex-Indian hot rolled coil (HRC) offers have been hiked sharply by $40/mt to $540/mt FOB during the past week, according to market sources.
The sources said that the increased offers are mostly from large local steel mills while commercial exporters largely have not submitted any offers due to scarce buying interest and the appreciating local currency.
Large steel mills are also limited to concluding just small-volume contracts to neighboring markets, sources added.
Reports available in the market indicate that the total aggregate volume contracted for end-of-March delivery to Bangladesh is 3,000 mt, while a smaller volume of around 2,000 mt has been transacted for Nepal shipment, according to the sources.
Ex-India CRC offers
Ex-Indian cold rolled coil (CRC) offers have risen significantly by $50/mt week on week to $590 /mt FOB, market sources said, adding that local steel mills are increasing export offers to align them with rising domestic prices.
However, trading activity has remained at negligible levels, with no significant volume contracted during the past week, the sources added.
Ex-India plate offers
Ex-Indian steel plate offers have been hiked by $30/mt during the past week to $610/mt, according to market sources, but no transactions have been reported in the market.