India’s flat steel export activity has remained at negligible levels with exporters becoming more nervous about concluding transactions. Some exporters, feeling pressure from weaker sales in the domestic market, have cut hot rolled coil (HRC) export prices, trying to accelerate sales, SteelOrbis has learned.
According to traders who cited market reports, there were at least two contracts cancelled during the past week at the pre-shipment stage, although exporting steel mills did not disclose the identity of the overseas buyers.
Markets sources said large Indian exporting steel mills are offering in a very wide range of $445-475/mt FOB, which has been almost stable on average compared to last week.
A western India-based steel mill was able to conclude an export contract for an estimated volume of around 8,000 mt HRC with an Antwerp-based trading house at around $505/mt CFR or about $475/mt FOB for end-of-April delivery. Despite this “exports to Europe have come to a near standstill after fresh border closures were reported in the region. Even exporters are cautious in concluding transactions following fresh incidents of contract cancellation, which results in losses for the exporters on freight forward bookings even at the pre-shipment stage,” a manager with Steel Authority of India Limited (SAIL) said.
There has been a report of a sale of 20,000 mt of ex-India SAE1006 at $465/mt CFR Vietnam ($445/mt FOB) last week, but an Indian-based trader said that “the producer withdrew the offer and the deal has not been confirmed.” At the same time, as it was hard to find sales destinations in the export market, the indicative level for ex-India HRC to Vietnam has slipped to $455-460/mt CFR ($435-440/mt FOB). “Mills are trying to sell at this level,” a source said, but bids have been heard at $450-455/mt CFR Vietnam.
