SteelMint’s Indian HRC export index has seen a marginal increase this week. Index for HRC (SAE 1006) FoB India stands at $530/t FoB basis, up by $3.5/t w-o-w. No confirmed deals (T1) were recorded in this publishing window.
Six indicative prices were considered as T2 inputs, with an average price of $530/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.
Major Indian mills have further reduced their export allocations, resulting in limited offers being heard for exports. Jindal Steel & Power is planning to cut down its steel exports to 20% share of total sales on revival in domestic demand, company officials highlighted in recent investor conference call. During the lockdown, the company was exporting 70-72% share of total sales.
Meanwhile, JSW Steel also reported a decline in steel exports on a strong recovery in domestic demand. Share of exports stood at 28% in Q2 FY’21 compared to 57% to its total sales in Q1.
“It’s heard that few Indian private mills are fully covered for exports till Dec’20 shipments. Meanwhile, no firm offers heard for UAE and Europe, a trader reported SteelMint”.
Mills lift offers for domestic market – Indian steelmakers have lifted HRC prices by INR 1,000-1,250/t w.e.f from 1st Nov’20 on improved domestic demand.
Global HRC market overview –
- Chinese mills raise HRC export offers on higher domestic prices- The Chinese mills have started offering HRC at $520-530/t FoB China, up from $515-530/t FoB basis a week ago. Better demand in the country and increased domestic margins along with future market gains led the mills to increase their export offers.
- Imported HRC offers for Nepal up by $10- Indian mills recently increased HRC export offers to Nepal by around $10/t at $560/t ex- mill equivalent to $580/t CFR Raxual Border for Dec shipments. Last offers were heard in a range of $550-555/t (ex-mill) for Nov shipments
- Imported HRC offers to Pakistan up from China- The Chinese mills have increased their HRC (SS400 B) offers to $546/t CFR basis from $535/t CFR basis a week back. However, offers from South Korea and Japan continue to hover at $555-560/t CFR basis. Also, last week Japanese steel mill has concluded export deal for 50,000 t HRC at $555-560/t CFR Pakistan for Jan delivery.
- Imported HRC offers to Vietnam increase today- Beginning this week, Russian mills have increased their offers for Vietnamese buyers by $5/t. The current offer stands at $525/t CFR Vietnam, still competitive against domestic offers. Meanwhile, other exporting nations also raised offers on a weekly basis.
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