Ex-India hot rolled coil (HRC) prices have shown marginal changes with a negative bias as most major mills have been either out of the market due to low profits for exports or have been offering higher prices compared to other suppliers. But some Indian sellers have been forced to cut prices, trying to push volumes abroad, SteelOrbis has learned from trade and industry circles.
Ex-India HRC prices have been reported in the range of $570-585/mt FOB, with the higher end of the range down by $10/mt, while the lower end of the range has lost $5/mt from last week. Even though prices have slipped slightly over the past week, most suppliers believe there will be a rebound in the near future due to the reduction in supply in Europe and other markets.
Offers for ex-India HRC from mills have been reported at $630/mt CFR to the UAE, down from the highest deal price reported earlier. This level corresponds to $585/mt FOB, and, though there has been a rumour about a contract at this level, it has not been confirmed by the time of publication and importers said that lower levels from China are available. “While the UAE was keeping trade activity alive for Indian mills, we are cautiously optimistic that some buyers from the EU will return over the coming weeks. The EU mills are being forced to increase prices to pass on higher energy costs. This is a positive for Indian sellers in terms of improving competitiveness in the market,” a source at a private steel mill said.
There has been information about a deal for ex-India SAE1006 HRC to Europe done at EUR 670/mt CFR, which translates to around $585/mt FOB. This contract was signed early this week, according to sources, but the price is already considered to be very low and most exporters, including Indian exporters, will target over €700/mt CFR, taking into account the closures of facilities in Europe and the typhoon in Asia.
“Some Indian sellers are testing the Vietnam market with offers at $570-575/mt FOB but no deals have worked out yet. There is very little appetite for higher prices in most Asian markets. Ex-India prices at around $560-565/mt FOB can work in this region. But we have to see if sellers can be aggressive at a time when local demand remains sluggish,” a source told SteelOrbis.
Nevertheless, according to market sources, one deal for a mixed cargo of SS400 and SAE1006 HRC from India to Vietnam has been rumoured at $580/mt CFR on average. But this price has not been included in the reference price as most mills’ sources said that this level is too low and the contract is either false or done by a seller with an urgent need to push volumes.