Most Indian integrated steel mills have continued to insist on higher hot rolled coil (HRC) prices, but have faced resistance from buyers, SteelOrbis has learned from trade and industry circles. While the focus of Indian mills was mainly on the Gulf market over the past weeks, one deal from India to Vietnam was reported at a generally lower level this week.
The ex-India HRC tradable price level is at around $840-870/mt FOB, with the midpoint at $855/mt FOB, versus $860/mt FOB on average last week, even though offers were pushed up by $3-10/mt to $870-873/mt FOB. Buyers have not been inclined to accept such increases, while local producers have mostly been declining deals at a discount, considering the rise in domestic demand and sales realizations.
The lower end of the abovementioned range corresponds to the latest sale from India to Vietnam. According to sources, an Indian mill sold 30,000 mt of HRC to this destination at $890/mt CFR in the past few days. And though this indicates some decline in the FOB price level, the price on CFR basis is in line with the previous sale to this destination done in September. Market sources said that most Indian producers were asking for $900-920/mt CFR and the sale even at $890/mt CFR is a positive sign as “India was out of the market [in Vietnam] for long,” a trader said.
Indian mills are still looking at sales to the Gulf, where realizations are higher compared to achievable prices in the Asian region, the sources said.
A western India-based integrated flat steel producer has concluded a trade for 10,000-12,000 mt with a Middle East buyer at $870/mt FOB.
“Enquiries are coming from Italy and Spain in the EU market. These talks will gain momentum from November-December when clarity will emerge for the EU tariff quotas after January. The EU outlook is positive and local exporters can adopt a wait-and-watch instead of pushing discounted deals now,” a source at ArcelorMittal Nippon Steel Limited (AMNS) said.