After remaining inactive since past two weeks, Indian steel mills have shown some movement in global market this week. Mills have been holding HRC export offers owing to better realization in domestic market. Thus they are focussing more on domestic sales than going for exports.
As per sources, Indian steel mills are heard to offer to Europe HRC at around USD 670/MT, CFR which is equivalent to USD 630-635/MT, FoB India.
Although no significant deals were heard to be concluded and buying interest was heard around USD 650/MT, CFR levels. According to trade sources, few small lots have been sold at these offers.
Also, appreciating Euro against USD is encouraging imports to Europe. Exchange rate EUR/USD is at 1.23 which was 1.19 on 01 Jan’18.
However no HRC import offers to Vietnam from Indian steel mills have been heard recently.
Supply constraints in Indian flat steel market and better realization in domestic are likely to keep Indian HRC exports low next month as bookings made this month have remained on lower side.
In domestic market, currently trade reference prices (basic) for HRC (IS2062) 2.5 mm-8 mm are assessed in the range of INR 42,500-43,000/MT (ex-Mumbai), INR 43,000 – 43,500/MT (ex-Delhi),INR 43,500-43,700/MT (ex-Chennai).The prices mentioned above are basic prices excluding GST @ 18%.
Leave a Reply