Indian hot rolled coil (HRC) suppliers are still facing bearish conditions in most key destinations as, even despite some rises from China, which is the main competitor, demand in most outlets is still very weak, SteelOrbis has learned from trade and industry circles.
The ex-India HRC price range has settled at $565-590/mt FOB, where the lower end of the range is $5/mt above last week’s level.
There have been some rumours about low-priced deals from India to the UAE (at $600/mt CFR or so), but they have been denied by most sources from both sides. The majority of offers have been reported to the UAE at $630-640/mt CFR, which translates to $570-590/mt FOB. However, no deals have been heard at this level.
The lowest offer level for ex-India boron-added SAE1006 HRC has been heard in Vietnam - at $600/mt CFR, which translates to $565/mt FOB. Though there has been a lack of offers from India at such a level, it is said to be achievable if there is any demand from Vietnam. Even though prices from India are the most competitive after increases from China, buyers have been staying on the sidelines.
“Exporters are unable to close deals in the Asian market despite offering fairly low prices as buyers are expecting declines and are not willing to buy now at all,” a Mumbai-based steel distributor said.
“We don’t think any Indian sales overseas are margin-positive at current prices. The only incentive for exports is from forward bookings of realizations with US dollars. Mills facing inventory pile-ups from sluggish domestic sales have to keep looking at export sales,” he said.
An official at an eastern India-based mill said that its aggregate offers of 30,000 mt in two lots during the past week in the Asian region could not be converted into deals.