Indian integrated steel mills have maintained hot rolled coil (HRC) export offers in a wide range during the past week, but actual trading has improved a lot as buyers in key Asian and the Middle East sales destinations have been more amenable to accept current prices and the tight supply has continued to boost prices in the European Union (EU), SteelOrbis has learned from trade and industry circles on Monday, March 2.
Ex-India HRC prices range between $710-790/mt FOB, up by $5/mt on average over the past week. Exporters have managed to increase trading prices to the Middle East and the EU, so mills have been able to secure higher realizations compared to last week as more deals have been at higher levels.
According to sources, the highest realizations are still in the European market. The latest deal for Indian re-rolling grade HRC has been reported at $835/mt CFR Europe, which is equivalent to $795/mt FOB excluding freight. The price could be with some extras, according to sources. Tight supplies in the EU with buyers more willing to secure early supply contracts have supported Indian sellers. “Demand is there as there is more pull in downstream products like CR/GI,” an Indian seller commented on demand from Europe.
In addition, up to 70,000 mt of Indian HRC were also booked to the UAE - at $740-750/mt CFR, which translates to around $715-720/mt on FOB basis. Even a price at a $5/mt higher level was reported for a small volume. The previous sales from India to this region were at $735/mt CFR, so at least $5-15/mt lower.
Trading has resumed in the Vietnamese HRC market. One of Indian mills managed to sell 30,000 mt of HRC at $735/mt CFR, while one more deal for a similar tonnage signed at $730/mt CFR. On FOB basis, these deals correspond to around $710/mt. At the moment, the tradable price is stable at the same level.
So, in total, Indian exporters have confirmed 130,000 mt of HRC trades to the UAE and Vietnam over the past week.
“Ex-China HRC offers are in a wide range. But buyers are generally becoming more willing to conclude deals at higher levels for short-delivery supply commitments and are expecting supplies to tighten once China reduces export rebates. This is providing opportunities for Indian mills to step in and be discretionary in accepting bids only at higher levels,” an official at ArcelorMittal Nippon Steel (AMNS) said.