Indian flat steel export offers have trended down during the past week, with most contracts restricted to shipments to neighboring countries, traders said on Monday.
“Indian commercial exporters have lowered their offers for most flat products barring hot rolled coil (HRC), which was maintained below the $500/mt mark to push volumes to neighboring markets,” a Mumbai-based trader said.
“Export activity to traditional destinations such as Indonesia and Vietnam has remained almost negligible as Indian exporters have been unable to match lower ex-China offers, while large Indian steel mills have been almost absent from the export markets,” the trader added.
During the past week, ex-India hot rolled coil (HRC) offers have remained stable at $490/mt FOB, according to market sources.
The sources said that there has been a rise in both the number of transactions and volumes for February deliveries to the neighboring markets of Nepal and Bangladesh.
According to the sources, the aggregate transaction volume for shipment to Bangladesh shipment estimated at 4,000 mt, although at least one contract is reported to have been concluded at a discount of about $10/mt. The volume contracted for delivery to Nepal is estimated by the market at around 3,000 mt.
Indian offers for cold rolled coil (CRC) have decreased significantly by $40/mt week on week to $520/mt FOB, according to market sources.
The sources said that, despite lower offers, buyers in Vietnam and Indonesia have received offers but have not responded and most local Indian commercial traders have remained focused on low-volume contracts for shipment to Bangladesh.
According to the sources, CRC contracts for shipment to Bangladesh have been estimated by the market at an aggregate of around 3,000 mt in the past week.
Ex-India plate offers have moved down by $20/mt over the past week and Indian traders’ offers are currently at $550/mt FOB, but no significant transaction has been reported in the market in the given week.