Indian hot rolled coil (HRC) exporters, who attempted to push up prices or hold back offers last week, riding on the back of the strong rebound in local demand and realizations, have still been insisting on these higher levels even as overseas buyers refuse to purchase, SteelOrbis has learned from trade and industry circles.
Ex-India HRC prices have been reported in the range of $580-600/mt FOB, while the midpoint has remained unchanged from last week at $590/mt FOB, but the range has narrowed by $10/mt. Though most large mills are still offering at around $600/mt FOB (+-$10/mt), buyers have not accepted any increase, having better options.
For instance, in Vietnam customers can purchase SAE1006 HRC in the local market from Formosa Ha Tinh at $610/mt CFR and the indicative level for the same grade from China is at $600-610/mt CFR. At the same time, most offers for ex-India SAE1006 HRC have been at $625-630/mt CFR, while some traders can provide $615/mt CFR, which, however, is still too high for importers in Vietnam.
In the UAE, official offers from India are around $630-640/mt CFR, versus $640/mt CFR heard last week. But as lower prices are achievable from China and bids have continued to fall, rumored deals from India at the abovementioned levels have been assessed as false by market participants.
The sources said that one mill is reported to have submitted an offer as high as $650-660 CFR Turkey, stable from last week, though no deals have been done.
“Indian mills are just testing the export markets by quoting higher offers. Some offers as high as $700/mt CFR have been heard to have been submitted with buyers in the EU. But no deals have been reported at such levels. Though prices are rising at western geographies, buyers are still not willing to accept higher prices,” an official at a government mill said.
“At the same time, the dynamics of domestic versus exports has changed significantly and mills are focussing on lucrative local price realizations. They will continue to maintain export offers at higher levels even if deals work out or not,” he said.