Indian hot rolled coil (HRC) exporters have largely maintained prices unchanged after attempts to increase them last week despite a lack of any significant buying interest in the Asian and Gulf regions, with most sellers comfortable in focusing on better domestic demand, SteelOrbis has learned from trade and industry circles. Only one Indian mill was trying to push some volumes in the export markets, but it was successful only after discounts.
Ex-India HRC prices have settled at $565-600/mt FOB versus $580-590/mt FOB last week. Many domestic private mills were refraining from submitting offers overseas, having reduced export allocations to push more volumes for local sales. The higher end of the range corresponds to the latest offer level from India to Europe, while the lower end has declined due to a sale to Vietnam.
One large Indian mill, which remained in the export market, is reported to have sold 70,000 mt of HRC in total (mixed volume of SS400 and SAE1006 HRC) at $580-590/mt CFR, with the higher end of the range corresponding to SAE1006. “This price is too low for us, so we stay aside,” another Indian mill said.
In the UAE, some Indian mills were targeting $640/mt CFR a week ago, but the real tradable level that ex-India sellers could provide has been still lower, at $620-630/mt CFR, while buying interest remained limited.
“There is still a lot of resistance from buyers to higher prices in Asia. Local Indian mills, particularly privately owned ones, are undeterred and are reducing export allocations as the domestic supply situation is tightening and offers more attractive realizations,” an official at a private Odisha-based mill said.
“Prices are stabilizing in key destinations. But dealers in the EU and Gulf markets are fully stocked with high-priced material and are generally not responding to offers. Overseas sales will hence remain peripheral for local sellers in the medium term,” he said.
