Indian hot rolled coil (HRC) exporters have largely been offering at higher prices compared to late September and, despite tepid interest from buyers in the Asian region, Indian sellers have been unwilling to push sales at a discount in view of their strong local market, SteelOrbis learned from trade and industry circles.
Indian integrated mills were seen to be offering at $860-870/mt FOB and, though this level is $20-30/mt above the level seen in early October, it is already $30-50/mt lower compared to the current local price, limiting the option of using prices to push sales overseas.
According to sources, buyers in key markets like Vietnam have preferred to defer any deals and are waiting for prices, while sellers from India and China have been focusing on strong local sales realizations. Buyers have been seeking landed valuations of around $890-910/mt on CFR basis for SAE1006 HRC from large Indian sellers. This corresponds to $845-850/mt FOB at the highest.
“Inventories at local mills are very comfortable. The local market is also absorbing recent price increases. Hence, adjusting export prices to push sales overseas is not viable” a source at ArcelorMittal Nippon Steel Limited (AMNS) said.
“Nominal volumes being traded now are only to maintain a market presence with long-term customers in the Asian region. But with prices rising both in India and China, we do not see a significant downside to export prices. Sellers are well placed to wait for buyers to return at higher levels,” the sources said.
One such marginal volume deal for 8,000 mt was reported by an Odisha-based mill at around $845-850/mt FOB, trade sources said.