Indian flat steel export offers have followed diverse trends during the past week but the strong activity seen earlier in the month has slowed down significantly with only a few large domestic steel mills successful in concluding fresh bookings with buyers in neighboring countries, traders said on Monday, July 29.
“Ex-India offers have showed mixed trends with local steel mills marginally lowering their hot rolled coil (HRC) offers but failing to attract any significant buying interest unlike in earlier weeks. Most of their activity has been confined to neighboring markets like Nepal and Bangladesh,” a Mumbai-based trader said.
“Indian traders have remained inactive in exports in the absence of buyers. The predicament of trader-exporters is that, while buyers are seeking discounts on offers submitted, exporters are unable to accede since most of their existing inventories were procured at higher prices. At the same time, the Indian currency remaining steady against the dollar does not offer any additional export margins in rupee terms either,” the trader added.
Ex-India HRC offers have decreased marginally by $5/mt week on week to $505/mt FOB, according to market sources.
The sources said that two western India-based steel mills have been able to conclude bookings of aggregate volumes in the range of 4,000-5,000 mt for shipment to Nepal. While a nominal booking volume of around 3,000 mt is reported to have been booked by buyers in Bangladesh.
Trader-exporters have been largely absent as offers submitted by them have not evoked any response and requests for discounts ranging around $10/mt have been rejected, leading to the failure of any contracts materializing, the sources added.
Ex-India cold rolled coil (CRC) offers have moved up marginally by $5/mt during the past week to $550/mt FOB, according to market sources.
The sources said that neither Indian traders nor large local steel mills have been able to conclude any fresh bookings with buyers not responding to offers.
Ex-India plate offers have remained stable at $575/mt FOB, according to market sources, who added that large steel mills have not reported any significant export contract during the past week.