Indian hot rolled coil (HRC) exports have showed slightly improved levels of activity largely in alloy categories from Vietnam and some other countries, although the sellers have had to drop prices further to conclude deals amid increased competition and with demand on the weaker side, SteelOrbis has learned from trade and industry circles.
Ex-India HRC export deals have averaged in the range of $710-730/mt FOB for Southeast Asian buyers and slightly higher at around $720-750/mt FOB for deals in the Gulf region, compared to the general tradable price range settled by SteelOrbis at $730-780/mt FOB a week ago.
The sources said that, following the imposition of 15 percent export tax by the Indian government, Indian mills have re-adjusted their production process and export allocations, and are in a better position to offer boron-added alloy HRC, which is exempted from the levy.
However, due to low demand in the EU region and continuing low-priced offers of ex-China and ex-Russia material in some outlets, Indian mills are having to continuously drop export prices, which are now at a considerable discount to domestic realizations.
“We still maintain that the strategy to push exports of alloy HRC is not viable in the medium and longer term. Ferro-boron material is generally not acceptable in the domestic market and any drop in shipments overseas will see a lot of unviable inventory buildups of such material. It is a high risk to export at lower margins too,” an official at an eastern Indian private mill, which does not produce alloy HRC.
Sources said that a western India-based mill reported a deal for alloy HRC with a buyer in Vietnam at $720/mt FOB or slightly lower for end-of-July shipment, which is around $750/mt CFR.
An eastern India mill concluded a trade for 5,000 mt with a UAE-based importer at $740-750/mt FOB for August shipment, the sources said. As SteelOrbis reported earlier, this is in line with the deals reported last week at slightly below $800/mt CFR.
A buyer from neighboring Nepal is reported to have concluded a trade for 5,000 mt with an eastern India-based mill at $720/mt FOB, the sources added.
