Indian hot rolled coil (HRC) exporters have been successful in improving realizations by $10/mt in Asia and by around $15/mt minimum in sales in the EU region, SteelOrbis has learned from trade and industry circles on Monday, March 8.
Integrated steel mills have reported successful sales of 30,000 mt each at $740-745/mt CFR to Vietnam, up by $10/mt over the past week. But taking into account higher freight rates, the FOB level corresponds to $715/mt FOB. For now, most Indian mills are offering officially at $765/mt CFR and are not ready to deal at any price below $750-755/mt CFR. “The competition is not tough as China’s prices are still high,” a mill’s source said.
The revised prices for the EU market from Indian exporters have reached $850-860/mt CFR and deals have been reported at the lower end of the range. This is $15/mt above the contract level of $835/mt CFR last week. According to market sources, the freight has increased to $45-50/mt to the EU, which brings the FOB deal price to Europe to $800-805/mt. Buyers were facing tight supplies and local producers like ArcelorMittal were hiking prices, prompting increased interest in ex-India HRC.
As a result, ex-India HRC reference price has been settled at $715-805/mt FOB with a midpoint at $760/mt FOB, up by $10/mt over the past week.
“Indian exporters have been able to improve export realizations even amid thin trading conditions, largely owing to the limited number of ex-China offers and buyers are having negative sentiments over Chinese sourcing owing to uncertainties over the issue of the export rebate and Indian exporters are stepping into the gap,” an official from the Indian producer said.
“Indian producing exporters are also taking a close look at the options of increasing export allocations now that bookings have started for the next fiscal year and domestic demand is seeing a plateau and risks of weakening. Tight supplies and high prices in the EU are a good opportunity for sellers to consolidate their presence there,” he added.
