Indian HRC exporters reject to cut prices more after previous sales

Tuesday, 28 September 2021 16:00:18 (GMT+3)   |   Kolkata

Indian hot rolled coil (HRC) prices were maintained by integrated mills over the past week, but as many buyers were not ready to accept the current levels, following previous deals, exporters were heard to be reducing trade activity, SteelOrbis learned from trade and industry circles.

Buyers in Vietnam, Malaysia and South Korea were active over the past ten days with a number of deals done, but now they were seeking lower prices. At the same time, Indian sellers were maintaining offers at $840/mt FOB minimum in view of rising cost of production, due to high imported coking coal prices in particular.

An offer level from Indian mills to Vietnam was reported at $890-905/mt CFR and slightly lower at $885-890/mt CFR from traders. Negotiations were in place with buyers bidding at $880/mt CFR as the highest, translating to $830/mt FOB or below.

Market sources said that price realizations from Asian markets were still lower compared to Gulf, but volumes in latter was still on the much lower side. The sources said that the seller concluded a sale to the Middle East at the price equivalent to around $850/mt FOB, but for a modest tonnage.

“Demand in the Asian market is weak. In view of falling iron ore prices, buyers are setting low valuations for concluding deals. But current valuations are unworkable for Indian mills who were seen to lower export activity towards close of next week. Whether they increase volume offerings overseas will depend on how the local market revives,” a Mumbai based trading with presence across Asian markets said.

“On the positive side, focus is on prospects in the EU for January shipments onwards, even though there is no sale in the region at present,” he said.

Sources said that EU tariff quotas for October-December is exhausted. Some local integrated steel mills have initiated sales negotiations for post-January deliveries with EU buyers at the indicative price heard at above $1,000/mt CFR, which is a positive if such deals are successful, the sources said.

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