Indian mills have continued to push up hot rolled coil (HRC) export prices on the back of the improved mood riding on sustained higher volume sales in some destinations, like the Gulf region, and also supported by signs of a revival in sentiments in Asia and the EU, SteelOrbis has learned from trade and industry circles.
The reference price for ex-India SA1006 2 mm HRC has been settled at $535-555/mt FOB over the past week, up by $10/mt over the past week. This price level is based on the average price of the latest deals, while new offers have already been voiced at higher levels of $560-570/mt FOB minimum.
Sources said that buyers from the UAE have been particularly active in confirming deals for ex-India HRC, enabling sellers to improve average realizations. One of the major Indian mills has managed to sell 30,000 mt of base SAE1006 HRC to the UAE at $580-590/mt CFR, according to market sources. This price translates to $545/mt FOB or even slightly above. As SteelOrbis reported last week, the previous deal to the UAE from India was at $560-570/mt CFR, so the deal prices have improved a lot. Also, one contract for January shipment from India was also rumored at $610/mt CFR, but no one confirmed it as having been done for the base grade material. Most market sources have confirmed that, after latest deals, Indian exporters have started to target $600-610/mt CFR in the UAE.
Also, another trade for a lower volume of hardly above 10,000 mt was confirmed with Bahrain-based buyer at around $600/mt CFR.
Indications of improved buying sentiments in the Asian region was revealed in a trade reported by an eastern India-based mill for a limited tonnage to Vietnam at around $535-540/mt FOB. This is an improvement as the tradable level last week was at $530/mt FOB, sources said.
Buying interest from the EU region was reported to be on the lower side but the outlook is still optimistic. Most new offers have been far above $600/mt CFR. Some mills are going to start negotiation from $630-640/mt CFR at the lowest next week (hardly below $560-570/mt FOB). The last deal from India to this destination was reported at $545/mt FOB.
Offers from India to Turkey have also been heard at higher levels - $610/mt CFR or so.
“The mood in most destinations is definitely improving. Buyers from Vietnam, absent from the market for months, are returning and, with Gulf buyers increasing deal sizes, Indian mills are achieving higher price realizations. We are keeping a close watch hoping for the trend to consolidate through December. This will weigh on our decision to increase the last quarter's export allocations or not,” an official at a private mill said.
“The EU market continues to remain weak. But a recovery looks likely with ex-China offers being pushed up. But year-end considerations will come into play and consolidation of ex-India prices at higher levels may be delayed by it,” he said.