Indian hot rolled coil (HRC) exports have lapsed into a near lack of activity, with sellers largely maintaining prices and only very limited trades of small volumes concluded at lower price levels. Most mills are unwilling to accept lower prices in view of rising input costs and having better outlook for October in general, SteelOrbis learned.
Indian mills have maintained prices at $840/mt FOB at the lowest, while only small-volume deals were concluded after small discounts of $5-10/mt.
According to trade circles, lowering prices has not been an option for mills as an increase of about $100/mt in input costs (coking coal, graphite electrodes, power) was left uncovered at the current levels of net export realizations.
“Stock movement in the local market is improving. Hence, discounted overseas sales are not an acceptable option for sellers,” a source at ArcelorMittal Nippon Steel Limited (AMNS) said.
“Buyers in the Asian region are only willing to consider deals at $820-830/mt FOB, which is not acceptable for sellers. Buyers from the EU are also showing no urgency to close deals for post-January deliveries when new quotas kick in, as they prefer to wait and watch if prices will settle. Local sales will dominate Indian mills in October,” the sources said.
An eastern India-based mill is heard to have concluded a small-volume deal to Asia at $830/mt FOB for December shipment, sources said. This price corresponds to around $880-885/mt CFR Southeast Asia, but this level is possible only for sizable cargo of not less than 30,000 mt.
The same company has also reported a limited trade to the Middle East.
