Indian flat steel export shipments showed divergent trends during the past week with commercial exporters lowering offers for hot rolled coil (HRC) prices in order to push volumes overseas but increasing offers for other flat products and failing to conclude any significant transactions, traders said on Monday, December 17.
“The only activity in the export market was noticed in the case of HRC. Most large domestic steel mills have remained out of the market during the past week despite seeing their inventories increase,” a Mumbai-based trader said.
“Surprisingly, with so many volumes of flat steel products in the market, Indian commercial exporters have been increasing offer prices for cold rolled coil (CRC) and plates and it is not surprising that no significant transaction volumes have been reported as buyers are not willing to accept offers at a time when ex-China offers are once again on the slide,” the trader added.
Indian exporters have lowered their HRC export offers marginally by $5/mt week on week to $515/mt FOB, according to market sources. They said commercial exporters have been able to conclude transactions for Europe for early January delivery with the aggregate volume estimated in the range of around 4,000 mt.
While buyers from neighboring countries have reportedly increasingly been looking at more competitively priced ex-China HRC, modest transaction volumes amounting to around 2,000 mt to Nepal have been reported in the market, the sources said.
Going against the overall bearish export sentiments in the market, Indian commercial exporters have increased their CRC offers by $20/mt week on week to $560/mt FOB, according to market sources.
Some traders maintained that, with no buyers willing to conclude transactions the increase in offer levels has largely been notional and that it will only be a matter of time before exporters will have to fall in line with falling ex-China offers and adjust their prices too.
Sources said that large Indian steel mills, despite concerns over rising CRC inventories at mills and market intermediaries, have not shown any signs of pushing volumes overseas.
Sources said that Indian commercial exporters have increased offer prices for plates by $20/mt week on week to $580/mt, without concluding any transactions during the past week.