Indian HRC exports attract stronger buying interest in Asia, volumes still low

Wednesday, 03 November 2021 14:01:30 (GMT+3)   |   Kolkata
       

Indian hot rolled coil (HRC) exports have showed slight signs of reviving in Asia, led by improving achievable prices in a key market like Vietnam, although the average deal size remains on the lower side with sellers expecting the uptrend in acceptable prices to gain momentum, SteelOrbis learned from trade and industry circles.

Specifically, sources said that buying for modest volumes in the range of 10,000-12,000 mt has revived in certain Asian markets, with ex-India offers at $830-850/mt FOB, which corresponds to around $900-910/mt CFR taking into account freight costs, and attracting more attention from buyers now. This is around a $10-25/mt improvement compared to the situation observed late last month when deals fell through with buyers rejecting offers at similar levels.

“Though it is too early to say whether export trading conditions to Asian destinations have reversed as volumes are still low, achievable prices are improving but remain below the expectations of Indian mills compared to realizations from local sales. But the slight improvement in acceptable ex-India prices coupled with the Indian rupee’s depreciation against the US dollar to around INR 75 from INR 74 a month ago is a positive trend,” a source at ArcelorMittal Nippon Steel Limited (AMNS) said.

“However, ex-India and local sales realizations are almost at par at present and before committing higher volumes in offers the mills will prefer to wait and watch buyers’ appetite for imports to improve further,” the sources said.

Sources said that a western India-based flat steel producing integrated steel mill is heard to have concluded a trade for 10,000 mt at a price of around $840/mt FOB for early January delivery with a Vietnam-based buyer.

An Odisha-based steel mill is heard to have concluded a 12,000 mt trade at $830- 840/mt FOB for end-of-December delivery with an Asian buyer, the sources said.

One trade was reported by a Maharashtra-based mill for 8,000 mt with a Gulf-based trading firm at a price of around $840-860/mt FOB, the sources added.


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