Indian integrated steel mills have increased hot rolled coil (HRC) export prices during the past week on the back of increases in local base prices and reports of a shortage of material in key Asian markets, but trades have remained limited in view of very low export allocations for the rest of the current fiscal year, sources told SteelOrbis on Monday, November 9.
The tradable value for ex-India HRC exports has rise by $10/mt to $535-540/mt FOB, while most available offers are at the range of $540-545/mt FOB, compared to $530-540/mt FOB in the earlier week.
“There is a tightening of supplies in several key markets like Vietnam, the Gulf and northern Europe, although for differing reasons. At the same time, ex-China HRC offers are also rising as Chinese steel mills attempt to compensate for their appreciating domestic currency. Indian integrated steel mills also responded by increasing export prices,” an official from Jindal Steel and Power Limited (JSPL) said.
“But Indian domestic demand is continuing to rise. Indian steel mills’ focus is clearly on meeting domestic demand. Margins from local sales are also higher than export realizations. Some shipments are being committed, but sellers just do not have sufficient materials available for overseas sales,” he added.
A recent offer from one Indian mill to Vietnam has been heard at $560/mt CFR, which is equivalent to $535/mt FOB, which, however, was considered as too low for the majority of sellers, which could book at up to $600/mt ex-stock in the local market.
A few small-volume bookings have been heard at $540-545/mt FOB, according to sources.
“At present, we are just completing deliveries already contracted. The exportable surplus for the last quarter is negligible, just sufficient to maintain market presence through small-volume offerings. All efforts are to meet demand from local end-users. Even market intermediaries are having to settle for limited small-volume bookings,” an official with Tata Steel said.
