SteelMint: Indian HRC export index drops by $12/t w-o-w on lower bids

SteelMint’s weekly HRC (SAE 1006) FoB India price index dropped by $12/t this week and stands at $513/t. Softening Chinese, Russian HRC export offers and lowering bids from importers have resulted to fall in the HRC index this week.

“Indian mills are less likely to lower export offers significantly amid higher domestic realizations. Also, they are largely booked for Oct shipment export orders. Mills seemed to be more interested in offering to the UAE market compared to the Vietnam market on competitive pricing. However, traders short-selling of positioned cargoes to Vietnam has turned sentiments bearish”, SteelMint learned from a trader.

Rationale – No confirmed deals (T1) were recorded in this publishing window. Seven indicative prices were considered as T2 inputs, with the average price of $513/t. The final price was an average of T2 inputs. The CFR prices were converted to FoB equivalent by deducting freight costs from the buyer/seller.

Global HRC market overview –

• Chinese mills have reduced their HRC export offers further amid weak buying interest in the overseas market anticipating further decline after the 8 days national holiday. Domestic market sentiments remain weak with anticipation of higher inventories after the holiday break.
• CIS origin HRC export offers have fallen by $10/t w-o-w on low buying interest from importers, while the liquidity concerns further weighed on the buyer sentiments. The current offer stands at $495-510/t FoB Black Sea.
• Imported HRC offers to Vietnam also witnessed a steep decline of around $20/t w-o-w from Chinese and Russian mills. Where the Russian offers were weighed down by weakening Ruble against $ and increasing COVID-19 infection concerns. Also the Chinese offers subsided on the pressure to destock.
• Japanese and Korean steel mills have resumed their HRC export offers to Bangladesh and are offering around $575-580/t CFR basis for Oct-Nov shipments. However, no major deals have been concluded yet.
• Imported HRC offers to Pakistan moved down by $5-10/t on low procurement interest amid weak downstream demand. Current offers are heard at $555-560/t CFR Pakistan from Japan, South Korea, and Taiwan.