Indian flat steel export offers have continued to soften sharply during the past week, but the lower offers are largely notional with no significant transactions being reported, barring small-volume contracts to neighboring countries, traders said on Monday, December 3.
“Even the across-the-board drastic reduction in offers by local commercial exporters has failed to attract any buying interest. Traditional buyers in Southeast Asian markets largely have not responded to offers. Buyers in neighboring countries like Nepal and Bangladesh have also been more interested in far more competitively priced ex-China material,” a Mumbai-based trader said.
“Large Indian steel mills have remained inactive in the exports market. The inability to push volumes overseas and rising inventories have forced most large mills to lower local base prices and settle for lower domestic sales margins, the trader added.
Ex-India HRC offers have softened significantly by $45/mt week on week to $520/mt FOB, according to market sources. They said that most offers have been from commercial exporters holding onto existing stocks, while most large steel mills have not even submitted offers as they have not been willing to cut offers and force transactions.
According to market sources, not more than a total 2,000 metric tons of HRC export contracts have been concluded during the past week to Nepal and Bangladesh for end-of-December delivery.
Market sources said that CRC export offers have been lowered by $30/mt week on week to $540/mt FOB. They said that only one transaction has been concluded during the past week for end-of-December delivery to Bangladesh, but the volume could not be ascertained from reports available in the market.
According to market sources, ex-Indian plates offers have declined by $30/mt week on week to $570/mt FOB, but no transaction has been reported in the market by either commercial exporters or large local steel mills.