The slight tentative revival in Indian hot rolled coil (HRC) exports to the Asian region seen earlier has fizzled out, following surplus cheaper ex-China availability and the sharp drop in acceptable prices in key destinations like Vietnam, SteelOrbis learned from trade and industry circles.
The acceptable prices in the Asian market have slumped to levels of $840-860/mt on CFR basis for SAE1006 coils, down from even small deals concluded by Indian sellers at $900-910/mt CFR in the second half of October to Vietnam and the UAE. But Indian integrated mills were seen to be unwilling to lower offers below $830-850/mt FOB, stable compared to the previous week, which is still at a discount compared to local sales realizations.
“Exports are not viable in the current Asian market. Floor realizations for mills are at around $860-880/mt FOB. Acceptable valuations for buyers in Vietnam are much below that even on CFR basis, leading to local mills withdrawing offers with no bids received either, halting export activity,” an official at a government-run steel mill said.
“We hear offers as low as $800-820/mt FOB [from China] after the fall in steel prices in the local market in China. With strong domestic demand and prices in the local market [in India] and comfortable inventories, exports are not the current focus,” he added.