India's hot rolled coil (HRC) export activity has bounced back during the past week and suppliers have managed to increase prices slightly, triggered by China’s resumption of imports, while demand from the EU and the GCC has also emerged, sources told SteelOrbis on Monday, July 13.
Integrated steel mills, particularly in the west of India, have increased export deal prices to $415-425/mt FOB, compared to $410-415/mt FOB in the previous week.
Chinese customers have resumed active import bookings, seeing higher local prices and futures prices. Indian prices have been among the most competitive. As a result, about 150,000-200,000 mt of Indian HRC have been sold to China over the past week, as SteelOrbis reported earlier. The first deals have been at $442-443/mt CFR, while the majority of contracts have been at around $445/mt CFR and some medium-sized volumes were sold at $450/mt CFR China late last week. Taking into account the freight from India to China at slightly above $20/mt, these deals translate to $420-425/mt FOB.
An integrated steel mill operating two plants in Odisha concluded an export deal for 18,000 mt for September delivery at close to $415/mt FOB to Vietnam, which is about $440/mt on CFR basis. However, the tradable value has already increased to $445/mt CFR Vietnam and one of the deals from India has been heard at $448/mt CFR.
At the same time, Indian suppliers have managed to book HRC in outlets outside Asia. Western India-based steel mills in close proximity to large ports have been successful in concluding deals for above average tonnages with EU and GCC buyers.
The sources said that a major Indian steel mill concluded a deal for an estimated volume of 20,000-25,000 mt with an Antwerp-based trading firm at a price estimated at $415-418/mt FOB. This level is equivalent to $450-455/mt CFR. Also, there have been reports of some sales to Spain. In addition, there has been an ‘inter-plant transfer deal’ with a Europe-based Indian affiliate for an estimated volume of 25,000 mt, although the price was not disclosed to the market.
A Maharashtra-based steel mill has concluded a deal with a Bahrain-based trading firm with operations across the GCC for an estimated 30,000 mt at a transaction price of around $415/mt FOB.