SteelMint’s Indian HRC (SAE 1006) export index witnessed a considerable increase of $28/t w-o-w and stands at a $635/t FoB basis. A significant hike in global HRC export offers and price rally in domestic market led to higher export offers.
Indian mills are actively focused on European markets due to better price realizations. Recently an Indian private mill booked HRC for Europe at $730-735/t CFR (which translates to $ 690-695/t FoB India) for Jan’21 shipments, SteelMint learned from market sources. Trade sources highlighted that there are hardly any firm Indian HRC export offers heard for Middle-East & Vietnam.
Notably, Indian steel mills have raised list prices in domestic market by around INR 2,000/t at the beginning of the month and the second hike was made yesterday by around INR 1,500/t for Dec deliveries.
Rationale : Three indicative prices were considered as T2 inputs, with an average price of $635/t. The final price was an average of T2 inputs due to the absence of confirmed trades (T1). Since, the deals concluded for Europe are not a part of SteelMint’s HRC export index methodology, hence they haven’t been included in calculations. The CFR prices were converted to FoB equivalent by deducting freight costs from the buyer/seller.
Global HRC market overview
1.Chinese HRC export offers continue to rise on-demand recovery- The Chinese steel mills further increased their offers to $630-635/t FoB China from $590-595/t FoB basis a week back. Increased demand in the global market and recent bookings made in Vietnam at higher prices propelled the mills to further raise their offers.
2.CIS offers witness significant jump- CIS-nations have raised HRC export offers sharply by around $27-35/t w-o-w basis. Current offers are heard to be around $635-655/t FoB as compare to $608-620/t FoB basis.
3.Imported HRC offers to Vietnam further up on improved demand- Imported HRC offers have increased further on a weekly basis from major exporting nations as bids from Vietnamese importers went up on supply tightness in the domestic market. Current offers from China stand at $645-650/t CFR Vietnam.
Recent deals reported:
- Baosteel concluded a 10,000 t HRC export deal for Vietnam towards the end of last week at $640-645/t CFR basis for Mar’20 shipment.
- Baosteel booked 30,000 t HRC (SAE 1006) for exports to Vietnam last week at $626-628/t CFR basis for Feb ’21 shipment.
- Major Japanese steel mills reported having booked around 30,000 t HRC to Vietnam at $635/t CFR for Jan’21 shipments.
Pakistani importers book HRC at increased offers- Pakistani importers have concluded a few import deals at higher price SteelMint learned from credible Pakistani sources.
- Chinese steel mill booked 15,000 HRC (SAE1006) to Pakistan at $650/t CFR for Feb shipment. Current offers are heard to be in the range of $650-660/t CFR. Last week Chinese mills were offering USD 610-620/t CFR Pakistan for Feb shipment.
- Japanese mill booked 12,000 HRC (SAE 1006) at $680/t CFR Pakistan for Feb shipment.
- Also, a Taiwanese steel mill has raised its HRC offers to $710/t CFR Pakistan for Mar ‘21 shipment. However, no major deals concluded at higher offers
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