India’s large integrated steel mills have managed to increase hot rolled coil (HRC) export prices in new deals, supported by the surge in export volumes particularly to key markets in China and Vietnam over the past ten days, SteelOrbis has learned on Monday, May 11.
A total volume of 250,000 mt of Indian HRC was booked to China for June shipment over 10 days to May 7. And also some tonnages have been booked to Vietnam. Deal price levels have been considered at $365-370/mt FOB. However, the most recent deal prices from Indian mills have been done at $375-380/mt FOB, sources have said, indicating a gradual uptrend.
After Chinese customers booked Indian coils at $385-390/mt CFR, they have decided to take a pause. Most fresh offers from India have been heard at $400/mt CFR.
The sources said that buyers from Vietnam have also become more active starting from last week. A western India-based steel mill has received a booking for 50,000 mt with a Vietnam-based trader at an estimated price of $367/mt FOB (about $387/mt CFR). After that, about 20,000 mt of Indian HRC was sold at $375-380/mt FOB ($395-400/mt CFR Vietnam) recently. “Indian mills are empty [for June shipment]. So, they are asking for $400/mt CFR minimum,” a trader said.
“Even after nudging up prices, ex-India HRC is still very competitive in key markets like China. With little local demand, I do not think that Indian exporters will risk too high export prices since export volumes are critical to keep plants running at lower levels,” a marketing manager at the mill said.
“In fact, HRC export prices can even retreat from current levels, as reports received from our buyers in China indicate that, despite strong demand, inventories at Chinese traders have reached higher levels and fresh bookings could take a pause unless Indian exporters roll back the price increase,” he added.