Indian flat export offers have declined across product categories during the past week but have failed to revive any buying interest, traders said on Monday, May 13.
According to market sources, most of the limited contracts for export volumes during the week have been restricted to buyers in neighboring markets like Bangladesh and Nepal.
“Buyers in key export markets seem to be waiting for prices to soften further. Buyers feel that renewed trade skirmishes between the US and China will have an impact on ex-China offers and hence have postponed contracts, according to reports received. The cuts in ex-India offers has not seemed sufficient to attract buyers who are expecting sharper price adjustments in the coming weeks,” a Mumbai-based trader said.
“The point to watch in the short term is whether Indian flat steel producers continue to maintain high domestic prices despite sluggish domestic sales. Inventory positions will determine whether these local steel mills will further cut export offers to push volumes overseas when local sales are stagnating,” the trader added.
Ex-India HRC offers
Ex-Indian hot rolled coil (HRC) offers have been cut by $20/mt week on week to $550/mt FOB, according to market sources.
The sources said that, as per market reports, an aggregate volume estimated at around 8,000 mt of contracts has been concluded with buyers from Bangladesh and Nepal by traders.
No major volumes have been transacted during the past week to key markets like Southeast Asia by either Indian traders or large domestic steel mills, the sources added.
Ex-India CRC offers
Ex-Indian cold rolled coil (CRC) prices have been pruned by $10/mt week on week to $570/mt FOB, according to market sources.
The sources said that no significant export trades have been reported by either traders or large steel mills during the past week.
Ex-India plate offers
Ex-India plate offers have been cut by $10/mt week on week to $605/mt FOB, according to market sources, who also said that no deals have been concluded during the past week.