SteelMint’s weekly HRC (SAE 1006) FoB India price index increased by $10/t at $512/t FoB India. Last week the FoB India price index stood at a $502/t FoB basis.
Major exporting nations– China, Japan, South Korea, and India have raised HRC offers by around $5-10/t.
Meanwhile, in India few mills are likely to undergo maintenance shutdown which may keep supplies tight in the near term. This resulted in an increase in the nation’s HRC export offers.
The index has been calculated using an average of T1 and T2 price inputs. Deals confirmed by either a buyer/seller are designated as T1 input while bids, offers, and indicative prices are designated as T2 inputs.
For this week’s assessment, two confirmed deals were considered as T1 inputs.
Confirmed deals:
- A private Indian steel mill based in southern India booked 10,000 t HRC (SAE 1006) for exports to Vietnam near to $525-527/t CFR levels for Sep end/early Oct shipments.
- Another private steel mill based in eastern India booked around 12,000t HRC (SAE1006) to Vietnam at around $525/t CFR basis for Sep end/early Oct shipments.
The CFR prices were converted to FoB equivalent by deducting freight costs from the buyer/seller. The average T1 price was calculated as $511/t.
A total of five offers and indicative prices were considered as T2 inputs, with the average price of $514/t. The final price was an average of average T1 and T2 inputs.
What is SteelMint HRC FoB Index- SteelMint publishes prices of HRC cargoes exported from major Indian ports on an FoB basis. Major Indian producers of HRC are JSW Steel, Tata Steel, and AM/NS India, with cargoes being shipped from the east and west coasts.
Methodology- Market data, including deals, bids, and offers that meet the delivery and quality criteria are considered for price assessments. HRC cargoes have to adhere to specific quality requirements to be considered for price calculation.
The highest importance in the price calculation process is assigned to confirmed deals where either a buyer or seller has provided details of the transaction. A buyer or seller can be a producer of steel or a trading firm.
Deals of only reputed and trustworthy producers and trading firms are included in the price collection and calculation process. Confirmed bids and offers are also considered valuable for the pricing process.
Global HRC market overview
Chinese HRC export rise on domestic gains- The Chinese steel manufacturers have further raised their offers by $5-10/t amid decent demand in the domestic market. The current week’s offer is at $525/t FoB China as against $515-520/t FoB basis a week ago.
The domestic market prices also rose by RMB 20/t on a d-o-d basis to RMB 4,040-4,070/t (Eastern China). The future market gains and higher raw material costs led to an increase in domestic market prices.
CIS origin HRC export offers up by $10/t– Nation’s HRC export offers moved up further by $10/t and were in the range of $480-490/t CFR basis. Last week the offers were in the range of $470-480/t CFR basis.
Bangladesh mill books 10,000 t HRC from Taiwan- Importers in Bangladesh were heard to have booked 10,000 t HRC earlier this week at $530/t CFR Chittagong port for October shipment. In general Bangladeshi mills import HRC with thickness less than 2mm and width 950 mm.
Imported HRC offers to UAE from India up further- Imported HRC offers to UAE increased by around $10-15/t from India. Current offers stand at $535-540/t CFR UAE for Oct deliveries as against $525/t for Sep deliveries. However, no deals were reported yet at the increased offer.
Imported HRC offers to Pakistan from China- Imported HRC offers to Pakistan is hovering around $535-540/t CFR basis from China.
Leave a Reply