Despite the strengthening of the US dollar and the crunch in import financing from lenders, competitive ex-Japan and ex-Russia offers have continued to drive sales in the local Indian hot rolled coil (HRC) market, SteelOrbis learned from trade circles on Wednesday, November 2. Besides, attractive offers for ex-Vietnam HRC have also resulted in new deals in India.
More specifically, it is confirmed from trade circles that a standalone Maharashtra-based re-rolling mill has concluded a trade for ex-Japan HRC totaling 20,000 mt at $600/mt CFR. The same re-rolling mill also concluded another deal for 15,000 mt ex-Japan HRC for December delivery, reportedly at a slightly lower price of $590-595/mt CFR, the sources said.
Furthermore, Russia has also emerged as a preferred sourcing origin for India HRC importers, with inward shipment increasing 233 percent in value terms in April-September. Over the last week, two bookings of ex-Russia HRC were reported by trading firms for 5,000 mt and 8,000 mt for end-of-November delivery, at $565/mt and $570/mt CFR, respectively.
Furthermore, according to sources, another deal for at least 5,000 mt of ex-Vietnam HRC has been reportedly signed by the biggest Vietnamese mill at $590-592/mt CFR India.
Apart from Russian sellers ensuring shortest delivery timelines and US dollar-alternative payments in dirhams or Hong Kong dollars, price offers have been reduced steadily over the past six months.
The landed price of ex-Russia HRC prevailed at INR 65,000/mt ($792/mt) CFR in April, while current ex-Russia offers are ranging at INR 45,920 mt ($560/mt) to INR 46,750/mt ($570/mt) CFR. According to market insiders, ex-Russia prices have stabilized over the past few weeks, while import trade volumes have remained steady as the landed price is still competitive vis-à-vis local trade prices and factoring in insulation from currency risks over trade in dollars.