Indian exporting integrated steel mills have continued to push up hot rolled coil (HRC) export prices during the past week, but actual traded volumes have continued to remain limited by their low export allocation, the strong competition in Asia, and better demand and profitability in the domestic market in India, sources told SteelOrbis on Monday, November 2.
Market sources said that ex-Indian HRC prices have edged up to $525-530/mt FOB, up by $5-10/mt from last week. At the same time, official offers from some mills have increased to $530-540/mt FOB, but the rise in domestic prices is still moving at a faster pace with producers planning another minimum $13/mt increase in HRC base prices for current month deliveries, ensuring higher realizations from local sales even after the increase in export prices.
Despite low export allocations, an official at a private local steel mill said that buyers in Asian markets like Vietnam were cautious in responding to ex-India offers as they were getting a better price for ex-China material, while at the same time Indian producers were in no mood to adjust offers in view of strong domestic demand. Offers to Vietnam were at $550/mt CFR or $525/mt FOB from mills.
Tata Steel, which is steadily withdrawing from the export market, officially stated that it has stopped all exports to China during the current quarter.
As a result of low demand in Asia, Indian HRC exporters have been focusing on limited regular sales to other destinations like Europe or the GCC or selling only to traders. Sources said that an eastern India-based integrated steel mill has concluded a modest tonnage export trade of around 10,000-12,000 mt at $525-530/mt FOB. Another western India-based steel mill has reported a trade for 15,000 mt with a Gulf-based trading firm.
