Indian hot rolled coil (HRC) exporters have been able to successfully revive trading activity after marginal downward adjustments to their prices, SteelOrbis has learned from trade and industry circles.
Sellers dropped ex-India alloy HRC prices to $670-710/mt FOB, down by $10-20/mt over the past week, but just slightly below the range reported on Friday, which was $680-710/mt FOB.
According to sources, while some deals at the lower end of the range were reported from sales in Asian markets like Vietnam, deals in the UAE and Europe were reported higher at $710-720/mt FOB over the past week.
According to trade circles, but not confirmed by the seller, a western India-based integrated mill concluded a booking of 30,000 mt of alloyed HRC with a buyer in the EU at $785/mt CFR. This price is in line with bookings confirmed to Europe from India in the wide range of $765-800/mt CFR. And even though some Indian mills are offering on the higher side, at $780/mt CFR and higher, declines in the local HRC market in Italy and the continuing weak market conditions may result in further drops in prices in the near future.
Sources said that workable prices in the Asian region are lower but sellers are still active in pushing deals to check inventory build-ups in view of sluggish local stock movements. For example, an eastern India-based mill reported a trade for 15,000 mt with a Vietnam-based buyer for end-of-July delivery at $680/mt FOB, which translates to $710/mt CFR. This deal has not been confirmed by the time of publication, but was widely heard in the market and assessed by market sources as “reasonable”, taking into account higher offers from Chinese traders.
The mill also concluded a deal at $710-720/mt FOB with a UAE-based trading firm for August, the sources said.
Among the lowest offers for ex-India HRC were those reported in the Turkish market, where sellers are trying to attract customers. Offers were reported at $680/mt CFR, down by $30/mt over the week. This level is not included in the general range for ex-India reference prices as it does not reflect deals, and these offers may come from traders, sources have said.
“Prices across key markets are declining. But the positive is that there is improved buying activity, enabling local mills to push higher volumes overseas. This is welcome at a time when stock movement in the domestic market remains on the slower side,” an official at a private mill said.
