Ex-India flat steel export offers have showed mixed trends during the past week with buyers from most key markets staying away from concluding contracts, traders said on Monday, May 20.
“Commercial exporters were seen to be attempting to nudge up ex-India hot rolled coil (HRC) offers during the past week, but at the same time there have been reports that marginal export contracts could only be concluded by offering discounts,” a Mumbai-based trader said.
“At the same time, ex-India cold rolled coil (CRC) offers have been lowered but have failed to attract any buying interest from key markets in Southeast Asia,” the trader added.
Ex-India HRC offers
Ex-India hot rolled coil (HRC) offers have been increased by a small margin of $5/mt week on week to $555/mt FOB, according to market sources.
The sources said that buyers in most key markets in Southeast Asia have been receiving offers, but have not responded, and hence trading activity has remained negligible.
However, the sources said that a few commercial exporters have been able to conclude contracts for modest volumes estimated by the market at around 6,000-7,000 mt for shipment to Vietnam, but only due to discounts in the range of $15-20/mt on the FOB price.
Buying interest from neighboring markets like Bangladesh and Nepal has also remained almost nil during the past week, the sources added
Ex-India CRC offers
Ex-Indian cold rolled coil (CRC) prices have been cut by $10/mt week on week to $560/mt FOB, according to market sources.
According to the sources, in view of the sharp fall in raw material restocking by automobile and consumer durable manufacturers, local steel mills have been trying to push volumes overseas through aggressive pricing, but have failed to conclude any significant transactions with buyers, at least during the past week.
Ex-India plate offers
Indian plate export offers have been maintained unchanged during the past week at $605/mt FOB, according to market sources, who also added that no transactions have been reported by either commercial exporters or large steel mills as most overseas buyers have not been willing to conclude contracts as they expect prices to soften in the coming weeks in line with the softening of ex-China plate offers.
