Indian hot rolled coil (HRC) export prices have showed divergent trends over the past week, with sellers facing challenges in the Asian market, but some Indian mills have been able to secure still-high realizations on the back of continued buying interest in relatively new markets like Latin America, SteelOrbis learned from trade and industry circles.
Ex-India HRC prices have posted some decreases compared to last week, to $880-930/mt FOB versus $920-940/mt FOB last week, though most deals to alternative destinations were closed at the higher end of the range.
Sources said that sellers were facing challenges in concluding deals at higher levels in Asian regions, with buyers having multiple sourcing options available. It has been pointed out that while Indian mills were heard to be pegging offers at above $900/mt FOB, while the tradable level is much lower, at $870-880/mt FOB from Asia, while most Vietnamese customers are bidding at $910/mt CFR for Indian coils.
However, in contrast, India exporters have been able to secure higher realizations of $910-930/mt FOB in alternative markets as buying interest from new outlets like Latin America has continued, although the sources said that traded volumes were lower compared to deals in traditional markets in Asia and the Gulf region.
“Market conditions in Asia, particularly in Vietnam, are challenging. There are a lot of sellers in the regions who are reducing offer levels. Buyers are seeking lower prices to keep landed price valuations in check, in view of surging freight costs. However, Indian sellers are not too keen on deep discounted sales either,” sources at ArcelorMittal Nippon Steel Limited said.
“Asian buyers are bidding at $830-850/mt FOB, but local sellers are not finding such bids attractive, leading to a limited number of deals,” he added.
Sources said that emerging buying interest from markets like Mexico is being sustained and, though volumes are still low, buyers are accepting higher prices and local mills are stepping up efforts to consolidate their presence in Latin America, as the EU market continues to remain in limbo owing to slack demand and issues of non-availability of tariff quotas for buyers.
According to the sources, a western India-based steel mill reported a trade with a buyer in Mexico at around $930/mt FOB, though details of the small tonnage were not available.
Another Indian mill is also heard to have concluded a smaller-tonnage deal with a buyer in Latin America at $920-930/mt FOB, the sources added.
Among the limited trade in the Asian region, an eastern India-based mill has reported a deal for 20,000 mt at a price of $880-890/mt FOB for October shipment, though the country of destination was not clear by the time of publication, sources said.
