Indian flat steel export activity has remained at negligible levels with offers showing mixed trends and buyers largely not responding to offers submitted, traders said on Monday, July 1.
“Indian exporters are observed to be refraining from aggressively pricing their offers to push volumes. Both exporting traders and large steel mills have generally been keeping offer levels unchanged, keeping an eye on the hardening trend seen in ex-China offers. However, this has largely kept buyers away from making any fresh bookings for ex-India materials,” a Mumbai-based trader said.
“The Indian rupee exchange rate against the US dollar is also seen to be remaining strong and hence exporters have not been able to factor in the possibility of the local currency weakening in their export offers,” the trader added.
Ex-India hot rolled coil (HRC) offers have decreased by $15/mt over the past week to $515/mt FOB, according to market sources.
The sources said that only bookings of modest volumes have been reported from neighboring countries like Nepal and Bangladesh, while buyers from Vietnam and Indonesia have not responded to offers, and reports in the market in Indian indicate that buyers in latter countries have preferred to conclude deals for ex-China HRC.
The sources said that aggregate export bookings of HRC from neighboring countries in the past week have been estimated in the range of 5,000-7,000 mt.
Ex-India cold rolled coil (CRC) offers have remained unchanged week on week at $540/mt FOB, according to market sources.
However, the sources said that no significant transactions have been concluded during the past week, with buyers in key markets not even responding to offers and possibly preferring to postpone their bookings until offers are adjusted in the coming weeks or until large Indian steel mills concede discounts to clinch contracts.
Ex-Indian plate offers have moved down by $10/mt during the past week to $565/mt FOB, according to market sources, who added that no large steel mill has reported any fresh bookings.