Indian integrated steel mills have been attempting to push up their HRC export prices further, although deals at the higher end of the price range have been rare and only made to EU buyers. Overall trading activity has been weak over the past week and some Asian buyers have been seeking to benefit from the plunge of the Indian rupee against the US dollar, but the general sentiment has remained positive, SteelOrbis has learned from trade and industry circles.
Ex-India HRC prices are in a range of $880-1,000/mt FOB, up by $20/mt on the lower end and up $40/mt on the higher end of the range over the past week. The export price at close to $1,000/mt FOB has been largely applicable for sales to the EU, but buying from the region has not been strong mainly due to India’s quota being limited after previous- trades.
Nevertheless, orders from the EU have not stopped, and some negotiations for Indian coils for July shipment have been held at above $1,050/mt CFR, translating to around $1,000/mt FOB.
According to sources, an Odisha-based integrated steel mill concluded a deal of 30,000 mt for June-July shipment at a price of around $880-885/mt FOB. With the freight at still not less than $40/mt, the price corresponds to $920-930/mt CFR. But some sources said that the deal was concluded about ten days ago.
Over the past week, most buyers were focusing on local purchases, but one stray deal at $930/mt CFR for Indian coils was reported as having been done by a trader.
Only one stray deal for a small volume was reported at around $865-870/mt FOB, for June shipment to Asia, but this was not included in the reference price as it was assessed as an exception and a sale to a long-term buyer.
For now, all major Indian producers are asking for not less than $900/mt FOB in Asia, expecting buyers will accept higher levels due to the tight supply in the market.
The sources said that, while buying from the EU will be a bit limited until the new quota kicks in, Indian steel mills will continue to maintain high profitability from export realizations, selling to Asia, with the Indian rupee weakening to INR 75 to the US dollar, an eight-month low, and currency traders forecasting a short-term target of INR 76 to the dollar.
“Overall export prices continue to move on an uptrend, as ex-India HRC sales terms are more competitive even though ex-China sales have revived,” an official from an Indian mill said.
