In recent conversation with industry participants, SteelMint learned that an Indian mill has concluded an export deal of HRC to Vietnam for August shipments.
As per information received, Indian steel maker booked around 20,000 MT HRC yesterday with Vietnam in the range of USD 512-513/MT CFR basis for Aug shipments. Trade sources shared that material has been booked by traders based in Vietnam.
However it was also learned from few sources that Indian mills are now holding back fresh bookings and might plan for hike in fresh export offers after yesterday’s increase in Formosa offers. Yesterday Vietnam’s domestic mill – Formosa announced hike in HRC offers by USD 25/MT and fresh offers for skin pass HRC ( SAE1006) stands at USD 541/MT, CFR Ho Chi Minh city.
Prior this, SteelMint reported in the beginning of this month that Indian steelmakers collectively booked around 1,50,000 MT of HRC with Vietnam from range of 505-520/MT CFR basis for August shipments since buyers in Vietnam were preferring Indian origin HRC over China amid competitive offers.
Domestic HRC prices hit 1.5 years low- As per SteelMint price assessment domestic HRC prices hit almost 1.5 yrs low at INR 38,500-39,000/MT (ex-Mumbai).Prices mentioned are basic and GST extra @18% is applicable. Similar levels were last witnessed in the month of Jul’17.
Domestic HRC prices fell over poor demand from construction and auto sector.Also onset of monsoon season will continue to keep domestic HRC prices under pressure.
Thus these reasons turned Indian steelmakers to explore exports options over accumulated inventory levels.
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