Indian hot rolled coil (HRC) exporters have slightly moderated their price increases compared to earlier in the month, but most trades have been reported at the higher end of the range, particularly in the EU region, as bookings for June shipments commenced over the past week, SteelOrbis has learned from trade and industry circles.
Ex-India HRC prices are up to the range of $1,130-1,250/mt FOB, compared to $1,080-1,220/m FOB a week ago, but most trades were reported above the $1,200/mt FOB mark. The price is $30-50/mt higher than last week, with the pace of increase a bit lower than a week before, down by $55/mt on average.
According to sources at mills, the highest realizations at $1,250/mt FOB or slightly above were reported from sales to the EU region.
“There is some moderation in aggressive pricing by local exporters, but not in demand. The pace of price increases is slower than seen early in March largely because mills in China are increasing their presence in key deficit markets in the EU and the MENA region at higher price competitiveness,” an official at a private mill said.
“But since ex-India prices are still lower than the EU local prices, the former still have significantly higher realizations from exports compared to local sales, and hence the total volume shipped overseas will continue to remain firm in the first quarter of the new fiscal year and the global market will remain in shortage,” he said.
In Europe, demand is still there, though the average volumes sales have declined, which is also connected with “the mill wanting go slow on bookings,” a selling source said, adding that the tradable level to Europe is staying generally at $1,280-1,350/mt CFR or $1,180-1,250/mt FOB at the highest.
Small deals for Europe have been confirmed at the highest at $1,350-1,370/mt CFR over the past week, according to sources. Offers to Spain have been at $1,400/mt CFR for ex-India coils and, though some sources claim that a deal was done, this could not be confirmed by the time of publication.
Trade sources said that a western India-based mill reported a small sale to Africa at around $1,230/mt FOB or slightly above. Also, an Odisha-based mill has reported a trade for 10,000 mt with a Middle Eastern trading firm at $1,200-1,230/mt FOB.
