Indian flat steel exporters have been trying to keep prices stable following sharp decrease over the past few weeks, but overall buying activity has been subdued so in rare deals mills have been forced to provide additional discounts, SteelOrbis has been informed.
Ex-India hot rolled coil (HRC) export offers were maintained during the past week at $412-417/mt FOB. According to market sources, two deals have been concluded by a large western India based steel mill with buyers in Malaysia during the past week for early November delivery. However, the sources suggested that both the deals were concluded only after offer of a discount ranging around 5 percent. Offers of Indian HRC from traders to Vietnam have been heard at $430-435/mt CFR (below $410/mt FOB), but demand has been limited.
In Europe ex-India HRC have been available at $445-450/mt CFR (about $410/mt FOB). There has been a rumor that a cargo has been sold by $20/mt below this level to Italy last week, but the information has not been confirmed by the time of publication.
Merchant exporters were largely absent from the market keeping their business closed for the festivals and faced with shortage in bank pre-shipment credit also kept exporting traders out of the market, the sources said.
Ex-India cold rolled coil (CRC) export offers ranged $495-498/mt FOB and barring a deal concluded by a eastern India based steel mill for early November shipment to Vietnam, no other significant trade was reported in the market during the week with the sources adding that Indian CRC was generally not finding many takers over the past few months in key Southeast Asian markets. “In view of the local currency showing strengths against the dollar and less than anticipated fall in raw material costs, large Indian exporting steel mills have limited pricing power to aggressively push exports and take advantage of falling volume shipments from China,” a Mumbai based trader said.
