Ex-India hot rolled coil (HRC) prices have continued to remain range-bound over the past week, though the mood has been varying according to different markets with some big volumes reportedly sold at lower levels to Asia, to Vietnam in particular, while at least a few stray deals are heard to have worked out at slightly higher levels in Europe.
Ex-India HRC prices have largely settled at $565-615/mt FOB, versus $575-610/mt FOB last week. According to sources, following a long pause in sales to Vietnam, around 20,000-30,000 mt in total of ex-India HRC SAE1006 were sold in Vietnam at $580-585/mt CFR last week, which corresponds to around $560-565/mt FOB. “Some traders in Vietnam even say the price was at $578/mt CFR in one of the contracts, but it doesn’t matter anymore as now ex-India HRC has been offered at $590/mt CFR and above in Vietnam,” a Vietnamese trader told SteelOrbis.
At the same time, at least two deals aggregating 30,000 mt for delivery to Antwerp were heard in the range of $675-680/mt CFR, against similar deals reported at $670-675/mt CFR a week ago, bolstering the mood among sellers in the region. Besides, according to sources, a Gujarat-based exclusive flat steel producer concluded a trade for 8,000 mt for delivery to Italy at $605/mt FOB, or around $665/mt CFR, the same as last week.
Meanwhile, business activity has been showing no signs of any improvement in the Gulf region. “No fresh deals for ex-India HRC have been heard since last week, and, frankly speaking, no new offers have been heard because no one interested in the GCC now,” a market insider said.
“There is growing confidence in overseas sales among local mills. Yes, securing higher prices remains a key challenge in the EU and only a few have been able to achieve improved sales margins. But there are more buyers in Europe for small parcels to circumvent local logistical bottlenecks,” an official at a private mill said.
“Stability in ex-China offers is also a positive. If this holds, Indian sellers will have better leverage to ensure higher workable prices in the Gulf and Europe. Even if price increase opportunities prove elusive, the market will still remain a good bet for local sellers to increase total volume sales, with mills in Europe also heard to be seeking higher local prices,” he added.