Supported by increasing demand from key overseas markets and high volume bookings over the past week, Indian integrated steel mills have decided to aggressively hike their export offers, SteelOrbis was informed on Monday, July 20.
Most exporting large integrated steel mills have managed to raise deal prices in all major sales destinations from $415-425/mt FOB to $430-440/mt FOB. And starting from Monday, some major producers have started to offer at $450/mt FOB (translates to $475/mt CFR Vietnam), seeing a price increase in the Southeast Asian market and even despite some slowdown of interest from China. Large volume bookings to Chinese buyers earlier in June and new deals in the Gulf and the EU have allowed Indian exporters to continue their uptrend further.
According to market sources, an eastern India-based steel mill has concluded two deals for a total of 60,000 mt at prices ranging at around $430-435/mt FOB. These tonnages have been sold to China, as confirmed by a number of sources from both sides. This price level corresponds to $450-455/mt CFR China.
Similarly another eastern India-based steel mill with plants in Odisha has concluded a trade with Asian buyers for an estimated volume of 40,000 mt at around $440/mt FOB for end-of-September delivery, the sources said. But the final sales destination has not been disclosed.
Steel Authority of India Limited (SAIL) has concluded a deal for 20,000 mt reported in the market to be with China-based trading firm at $432/mt FOB for September delivery, which was significantly higher than the previous deal of the producer.
A Gujarat based-steel mill has reported a deal for 35,000 mt with an Antwerp-based trading firm at a price of around $430-435/mt FOB for September, market sources said.
Though business activity in the Gulf region is expected to ease off owing to the festival holidays ahead, at least two western Indian steel mills have reported sales at $430-432/mt FOB, market sources said.
“The Southeast Asian region is seeing a strong revival in demand and buyers are rushing to make import bookings. Indian steel mills are leveraging the demand improvement to aggressively push up export prices, even though Chinese buyers were seen to be turning cautious and resisting deals at higher prices,” an official at an Indian mill said.
“It is not clear as to whether demand in overseas markets will hold as some analysts are claiming it is a temporary trend. However, it is a strong positive for Indian steel mills which are pushing up production levels, and overseas shipments are a strong fundamental to achieve economies of higher production,” he added.
