Indian integrated steel mills have continued to aggressively push up hot rolled coil (HRC) export prices owing to the continued tightening of supplies in the local market and the uptrend in key destination markets, with reports of at least two producers submitting offers above $600/mt on FOB basis, SteelOrbis learned on Monday, November 30.
Market sources said that ex-India HRC prices have increased strongly by $30/mt to $590-600/mt FOB, with several traders reporting that two large producers have even submitted offers of around $610/mt FOB basis, taking valuations in key Southeast Asian markets to levels of $630-640/mt on CFR basis.
However, offers submitted are largely nominal as the mills did not have any exportable surplus allocations for January-February as they have already been deferring deliveries to local buyers in the absence of sufficient inventories for December-January deliveries.
“All HRC exporting countries are in tight supply zones. Ex-India offers around $600/mt FOB are still viable for buyers in key markets like Vietnam. But most Indian integrated steel mills do not have any export allocations for January-February and even local supplies are falling below contracted volumes. So export price offers are largely notional and restricted to small volumes,” an official at an Indian producer said.
Market sources reported that an eastern India-based steel mill made a trade for a small tonnage of around 8,000 mt at a price of around $590-600/mt FOB. A western India-based steel mill also reported a small-volume booking of 10,000 mt at around $590/mt for February delivery, the sources added.
Reports available in the market indicate that a Vietnam-based buyer is in active negotiations with an eastern integrated steel mill for an enquiry of around 20,000 mt, but no deal could be confirmed against an offer submitted at $620/mt CFR (equivalent to around $595/mt FOB), while buyers setting price ideas at $600-610/mt on CFR basis, two traders said.