Indian hot rolled coil (HRC) exporters have decided to cut prices to attract customers in the Middle East, with some tonnages sold. Also, some more competitive offers from India emerged in the Vietnamese market, which may result in bookings soon. Nevertheless, the policy of exporters is highly dependent on the sales destination. For instance, tight availability has pushed up prices in Europe and Indian mills have managed to increase their prices there, SteelOrbis has learned from trade and industry circles.
Ex-India HRC prices have settled in a wide range of $710-780/mt FOB with a midpoint at $745/mt FOB, down by $5/mt week on week. The lower end of the range has dropped sharply from last week, down by $30/mt, amid confirmed sales to the UAE. At the same time, the higher end of the range has increased by $20/mt as some sales at higher levels were reported to Europe.
“If cutbacks in the Chinese steel export rebate come, it will be good for us. It will mean lower volumes flowing into international trade, less price competition for other Asian exporters. Some Asian buyers will still source from China, but pricing will be less of a weightage,” an official at an Indian steelmaker said. “If Chinese supplies leave a demand gap in the overseas markets, Indian exporters can increase export prices and the first signs of that is what we are seeing now,” he added.
Sources said that a western India-based steel mill has reported one trade for a minimum of 20,000 mt at $735/mt CFR or slightly below. This price level corresponds to about $710/mt FOB. Another booking of a similar volume was also rumoured in the market. The initial offers were higher at $760/mt FOB, but the supplier has had to cut prices to achieve the sale.
In the Asian market, Vietnam in particular, official offers from at least one mill were at $730-740/mt CFR, but another seller is said to be able to provide a price at $710-720/mt CFR Vietnam. Though no bookings have been reported so far, sources said that some deals could be seen soon as Chinese exporters hike prices and Vietnamese customers will have to agree to buy at higher levels in the near future. Offers for ex-China SAE1006 are at $700-720/mt CFR Vietnam.
The latest bookings for Indian HRC were done at $820-825/mt CFR, SteelOrbis has confirmed, which corresponds to about $780-785/mt FOB. As SteelOrbis reported earlier, the previous contract to Italy was at $800/mt CFR.