Indian hot rolled coil (HRC) exporters have aggressively increased prices over the past week, supported by strong sales previously, a surge in domestic realizations and drawdown in inventories, and export allocations, SteelOrbis has learned from trade and industry circles.
Ex-India HRC prices have been pushed firmly above the $800/mt FOB mark, increasing by $50/mt over the past week to $840-880/mt FOB. Although early last week some trades were heard in the range of $790-820/mt FOB, some rare deals at above $850/mt FOB have already been reported for now.
“With domestic sales realizations surging to levels of $890/mt, earlier export offers below the $800/mt FOB mark or close to it are no longer viable. Domestic volume sales are also high and mills have low export allocations for March-April shipments and hence are under no pressure to push volumes overseas unless prices are higher,” a source from a large Indian mill said.
“The global price trend is very positive. Europe's prices are looking good. Prices will gain momentum too once business activity picks up in China. Apart from the Gulf and Asia, Indian exporters are seeing good sustained buying from Africa,” the source said.
The last booking for ex-India HRC to Europe was reported for 30,000 mt at $925/mt CFR done last week, which translates to around $875/mt FOB or above. A week ago, the offer level from India to this destination was at $900-915/mt CFR. But up to now, suppliers have increased offers to Europe even more, to $950/mt CFR.
New offers from some mills for April shipment to Turkey and Egypt were voiced at $930/mt CFR early this week, translating to $870-880/mt FOB. And though there have been no fresh trades lately at above $900/mt CFR, they are very much expected, according to sources.
The previous booking for ex-India HRC to Turkey was done by a trader at $890/mt CFR. In addition, there was information about a trade to Egypt at a slightly lower level over the past week, but any offers at below $900/mt CFR are not available any more.
In the Middle East, the UAE specifically, an offer for Indian coils was heard at $915/mt CFR today, but with “no success yet,” a source said. The last deal to this destination was at $840/mt CFR, as SteelOrbis reported last week. A rumor of a sale at up to $880-890/mt CFR has not been confirmed by the time of publication.
The lowest price level is still for Vietnam, where Indian mills have been offering at $870-880/mt CFR or $840-850/mt CFR. Buyers there have not been ready to accept an increase so far as they have been waiting for local price announcements first and have lower offers from some sources. For instance, traders have been offering position cargoes of ex-India material at $840/mt CFR Vietnam. “But mills will not give such prices,” a source said.
