The export activity of Indian integrated steel mills has surged during the past week with unprecedented volumes of hot rolled coil (HRC) traded. Steel mills have been aggressively pushing volumes for late May and June shipment and higher buying interest, mainly from Vietnam, has allowed them to marginally increase export prices, SteelOrbis has been informed on Monday, April 20.
According to traders and market sources, aggregated HRC export volumes contracted during the past two weeks have been estimated at 150,000-200,000 mt. The total tonnage sold over just the past week has been at least 100,000 mt, an unprecedented weekly trading volume in recent months, with almost every integrated steel mill reporting successful sales.
Market sources said that most Indian steel mills took advantage of revived buying and managed to marginally increase export prices by $5/mt over the past week to around $375-385/mt FOB. Better demand allowed steel mills to reduce risks of higher inventories, following the sharp drop in off-take in local sales, and to maximize export realizations with the Indian rupee at a historical low of INR 76.45 to the US dollar.
A number of traders early last week were at $395/mt CFR, $396/mt CFR, $399/mt CFR to Vietnam for 10,000-20,000 mt each, which corresponds to $375-379/mt FOB.
The sources said that an eastern India-based steel mill concluded a contract of an estimated 15,000 mt at $383/mt FOB or $403/mt CFR Vietnam. Another private steel mill also located in eastern India reported a contract with a Vietnamese buyer at the slightly higher level of $384/mt FOB ($404/mt CFR) for thinner gauge HRC.
A western India-based steel mill reported a transaction of 20,000 mt with an Asian buyer at $380/mt FOB for early June shipment.
According to market reports cited by the sources, state-run steel mill Steel Authority of India Limited (SAIL) has floated a tender for export of 15,000 mt of HRC and another export tender for 10,000 mt of hot rolled plates.
“Sentiments among buyers in key Asian markets improved, though it is difficult to say if this will be sustained,” a manager at an Indian steel mill said.
