SteelMint: Indian HRC export index moves up; market remains inactive

Indian HRC export market continues to remain muted with the mills holding back offers. SteelMint’s weekly HRC (SAE 1006) FoB India price index increased by $6/t w-o-w to $516/t FoB basis. Last week the index stood at a $510/t FoB basis.

“ Indian mills are not offering HRC for exports since domestic prices are way too good” shared a trader to SteelMint.

There are price indications going on for the Middle East market, however no firm offers for SE Asia or the Middle East region were reported by trade sources to SteelMint.

On the other hand, major exporting nations have raised HRC export offers  after Chinese mills resumed offers post weeklong National day holidays. Chinese mills are now offering HRC at around $520-525/t CFR Vietnam. Meanwhile, Japanese and Korean mills are offering HRC at around $545/t CFR Vietnam.

Rationale – No confirmed deals (T1) were recorded in this publishing window. Four indicative prices were considered as T2 inputs, with the average price of $516/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 HRC export offers went up by $10/t this week and stands around $510-515/t FoB China, supported by the RMB gaining strength against $. Along with this, the improved domestic market sentiments and surging futures also added to the reasons for the hike in offers. The offers were around $500-505/t FoB basis just before the Golden Week holidays.
• Vietnam domestic Formosa Ha Tinh may announce a decline in its HRC offers by $25-25/t for Dec deliveries, SteelMint learned from its credible sources. The last offer was at $550-555/t CIF basis for Nov deliveries.
• CIS origin HRC export offers recovered this week from the consecutive decline amid limited buying interest in the last two weeks. Current offers were assessed at $480-495/t FoB Black Sea, up from $470-495/t FoB basis a week ago.
• Pakistani importers booked 25,000 t HRC from Ukraine last week at $490/t CFR basis, SteelMint learned from its channels. Current offers from China stand at $535/t CFR basis, while South Korean offers heard at $545/t CFR basis this week.
• Korean and Japanese mills are offering HRC to Bangladesh at $555/t CFR levels for end Nov shipments.