Indian hot rolled coil (HRC) exporters have successfully pushed sales in some major sales destinations in the Middle East and they are also seeing some improvement in buying interest in Vietnam. So, the Indian sellers are preparing for price increases in most major markets, seizing newer opportunities from rising energy costs in most Western markets, SteelOrbis has learned from trade and industry circles.
Ex-India HRC prices have been reported in the range of $570-610/mt FOB, where the lower end corresponds to the previous deals, while the higher end is the new levels targeted by the mills. Last week, the ex-India reference price was $570-585/mt FOB.
Two western India-based mills have reported an aggregate deal for 20,000 mt to Turkey at $610/mt CFR, while one of the mills was also reported to be negotiating additional sales to the same destination at $630/mt CFR. These prices translate to around $580/mt FOB or slightly below, but the contracts were signed at least a week ago, according to market sources. New offers from one major Indian mill are at $650-660/mt CFR, which corresponds to $610/mt FOB or so. Another producer from India has been offering even higher levels, at $660-670/mt CFR Turkey.
The lowest offer of ex-India HRC to Vietnam has been heard at $610/mt CFR or $580-585/mt FOB this week, but some suppliers have been targeting even higher - $630/mt CFR from the east coast for end-of-October shipment.
A western India-based mill has reported two trades for around 20,000 mt with buyers in Egypt and Saudi Arabia at $615/mt CFR and $620/mt CFR respectively. But again, these levels are not available anymore. Offers to the UAE have increased by $10/mt over the past week to $640/mt CFR.
“Rising costs in the West have increased the price competitiveness of Indian HRC in key destinations. Indian sellers are keen on driving volumes overseas. While it is early to call in a rebound in exports, with energy costs increasing, the market dynamics are changing in favour of producers in India,” an official at a private mill said.
“Our assessment is that, if the positive buying trend is sustained over the next few weeks, Indian sellers will get into a position to increase deal prices too,” he said.