India’s flat steel exports activity has continued at a strong note during the past week as local steel mills have still been interested in lowering inventories by shipping volumes overseas and so decided to cut offers further, SteelOrbis has been informed.
Indian export offers for hot rolled coil (HRC) have been lowered to $400-405/mt FOB during the past week compared to $400-412/mt FOB in the previous week, but deal prices have dropped below $400/mt FOB. According to traders, some deals for shipments to Italy have been concluded by a western India-based steel mill at $395/mt FOB.
The sources said that buyers in key markets like Vietnam have remained quiet during the past week, but reports available in the market suggested that two deals have been concluded for late November delivery at a price of around $400/mt FOB. However, such a price level is high due to prompt shipment, while bid prices for HRC for December shipments have been at $400-405/mt CFR. Some tonnages were sold by traders at $410/mt CFR last week, but such prices have been not available from Indian mills yet.
“Indian HRC offers in markets like Southeast Asia and Europe have become very competitive. This has enabled Indian steel mills to increase average volumes in each contract and to lower inventories,” a Mumbai-based trader said.
Sources citing industry figures said that aggregate inventories of large domestic steel mills in the first week of October 2019 were estimated at 14 million mt, eight percent lower than inventory levels during the first week of September and the drawdown in inventories was largely owing to sustained higher shipments of ex-India HRC to key overseas markets.
Ex-India cold rolled coil (CRC) offers have been lowered by $20/mt to $450/mt FOB, but no large steel mill has reported any significant deals during the past week, according to market sources.