Indian integrated steel mills were trying to maintain hot rolled coil (HRC) export prices during the past week and the uptrend came to a halt in reaction to lower ex-China offers, accepting lower bids from buyers. Some of Indian exporters had to cut prices, but most exporters maintained prices, significantly reducing export allocation.
Market sources said that ex-India workable price level for HRC remained at last week’s level of $505-515/mt FOB. Offers are rare in the major export sales destinations and are at higher level - $525-535/mt FOB.
“Local exporting steel mills have to decrease HRC prices to stay relevant to the market and maintain presence overseas. But at the same time, most exporters have firmed up medium term sales plans that is less dependent on overseas sales and accordingly adjusting volume allocations with increasing bias toward the domestic market,” an official at JSW Steel said.
Both Chinese domestic and export HRC prices softened during the past week, putting pressure on positions of Indian mills. Market sources said that among the few modest volume export contracts concluded during the past week was a trade for 8,000 mt from an eastern India based steel mills with an Asian buyer at $505-510/mt FOB. Another western India based steel mill reportedly concluded a November delivery deal 10,000 mt at around $505/mt FOB, the sources added.
“Most local steel mills are still concluding deals for November shipment for small volumes at lower prices than compared to price of current month deliveries. When bookings for December commence, producers will allocate far lower volumes for exports and increase local sales in which not only per ton realizations higher but volumes are moving faster,” an official at an eastern India based integrated steel mill said.
