Indian hot rolled coil (HRC) export volumes surged over the past week in key Southeast Asian and Gulf markets, but sales realizations belied expectations of sellers, SteelOrbis learned from trade and industry circles.
Estimates from trade and industry circles indicated that deals for around 100,000-120,000 mt of HRC exports were concluded during the past week with around 50 percent accounted by buyers in Vietnam, as Indian sourcing had become a very viable option with ex-China offers steadily dwindling.
However, officials in mills pointed out that despite improvements in buying interest and export volumes booked over the past week, it was not matched by commensurate improvements in realizations as sales prices continued to range between $870-890/mt FOB while sellers were expecting the rebound in buying activity to push prices above the $900/mt FOB mark.
“There is a supply gap left behind with ex-China offers being pulled out in key Asian markets. Indian mills are attempting to fill the gap,” an official from a private steel mill said.
“But despite the surge in export trades in Asian region there are still challenges for Indian mills. The EU export quota for ex-India HRC is exhausted. New deals will have to wait for a new quota to kick in. This translates to excess export allocation available with Indian mills and need to divert higher volumes to Asian region. This, along with general price sensitivity of buyers is keeping export realizations in check and sellers are not able to push up export prices,” he said.
An eastern Indian based integrated steel mill was heard to have concluded a deal for 30,000 mt of SAE 1006 grade coils to Vietnam at around $870/mt FOB or slightly below, lower than an initial offer of $920/mt FOB.
The same mill also reported a trade for an estimated volume of 25,000 mt to the Middle East based buyer at $870-880/mt FOB, the sources said.
Another private steel producer reported an export trade from its mill in the state of Jharkhand for around 30,000 mt with Asian buyer at around $870/mt FOB, the sources added.