Indian steel mills are eyeing a good time ahead on rising export inquiries and prices. Mills have been selective in their export offers as they anticipate global sentiments to remain strong. Steel prices have increased by USD 10-15/MT in the last few weeks despite iron ore and coking coal prices have dropped. Most of the Indian mills are booked for Dec shipments.
Indian steel exports in Q2 FY20 hit 3.7 MnT against 2.4 MnT in Q1FY20. Indian mills have been aggressive on exports on account of weaker domestic demand.
Market feedback
1. JSW Steel has kept its HRC export offers on hold citing increase in global prices. Last indicative price for SAE1006 HRC were at $440-445/t CFR Vietnam
2. Essar had booked 40,000 MT HRC early this week at an average price of USD 435-440/MT CFR Vietnam for Dec shipments. According to sources company is offering small parcels at around USD 445/MT CFR Vietnam
3. Tata has booked around 15,000 MT HRC at USD 440-450/MT, CFR Vietnam
4. Indian positioned cargoes reported to have booked by Vietnamese mills at USD 442/MT CFR Vietnam
5. 33,000 MT Russian positioned HRC cargo booked USD 435/ MT CFR Vietnam
6. SAIL heard to have booked 6-8 parcels (15,000-20,000 MT each) of billets/blooms for Dec/early Jan shipments in last one month
7. Pakistan pipe mills reported to have booked Chinese HRC at around USD 460/t CFR levels. Current offers at USD 470/ CFR for Dec shipments.
Japanese and Taiwanese have no allocation for December shipments, while their offer for Jan shipment to be released around end of this month
8. Chinese HRC export offers are assessed at USD 450/MT, CFR Vietnam, up by USD 15 against two weeks ago.
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