Ex-India flat steel export offers have remained stable during the past week but with negligible trades concluded in the market with both commercial exporters and large local steel mills unwilling to push volumes overseas due to end-of-fiscal-year considerations and the squeeze in bank credit availability, traders said on Monday, March 25.
“Most exporters are busy closing their accounts and are staying away from any activity in the market,” a Mumbai-based trader said.
“At the same time, exporters had mostly exhausted their pre-shipment export credit limits for the current year. Banks have also reduced their export credit exposure as the fiscal year draws to a close and hence exporters are unwilling to offer credit to buyers without a working capital flow from financial institutions,” the trader added.
Market sources said only small-volume contracts for deliveries to Nepal and Bangladesh have been concluded during the week by traders.
Ex-India hot rolled coil (HRC) offers have remained stable during the past week at $555/mt FOB, according to market sources.
The market sources state that contracts for small tonnages have been concluded for shipment to Nepal and Bangladesh, with the sources estimating the aggregate transaction volume at around 5,000-6,000 mt for April delivery.
According to market sources, ex-India cold rolled coil (CRC) offers have moved sideways during the past week at $600/mt FOB.
Sources said that only a small-volume transaction estimated at around 3,000 mt was concluded during the past week by a Mumbai-based trader for Bangladesh delivery in early April.
Ex-Indian plate offers have also remained unchanged during the past week at $620/mt FOB, according to market sources who stated that no significant transaction has been reported in the market.