SteelMint’s Indian HRC (SAE 1006) export index continues to maintain its upward momentum and reported a further hike by $44/t w-o-w basis. Currently index stands at $740/t FoB basis. The last index stood at $696/t FoB basis.
Reasons driving export offers:
- Spurt in HRC offers from major exporting nations amid global price rally lead to steep hike in export offers from India.
- Domestic mills are likely to announce four consecutive price hikes in the local market on robust sales. This provides enough opportunity for Indian mills to raise offers in the global market
Rationale: An Indian mill was heard to have booked at 30,000t parcel for Vietnam at $740/t CFR. However since the deal could not be confirmed from buyers, it hasn’t been considered in our price calculation. No firm market price indications were heard for Middle East so far this week, participants reported SteelMint.
Seven indicative prices were considered as T2 inputs, with an average price of $740/t. The final price was an average of T2 inputs due to the absence of confirmed trades (T1). The CFR prices were converted to FoB equivalent by deducting freight costs from the buyer/seller.
Global HRC market overview
1.China HRC export offers shoot up on strong futures- Chinese mills have significantly increased their export offers by $55-60/t on a w-o-w basis backed by strong domestic market trades and hike in futures seen yesterday. Yesterday, SHFE HRC futures contract for May delivery surged by as much as RMB 133/t d-o-d to RMB 4,742/t.Currently HRC export offers stand at $700-720/t FoB China in contrast with $645-660/t FoB basis a week back.
2. CIS origin HRC export offers jump by $35/t on strong demand- The CIS origin HRC export offers surged by $20-35/t w-o-w basis due to strong demand from major importing nations, especially Turkey. The current week offer stands at $710-720/t FoB Black Sea, which was $675-700/t a week ago.
3. Imported HRC offers to Vietnam surge on higher global prices- Importers have been receiving higher offers for the past few weeks, with a recent hike of $20-30/t on a weekly basis. Increased demand for imported HRC and tight supply continues to keep offers on the higher side. Chinese mills are offering around $710-730/t CFR Vietnam against the previous week’s $690-700/t CFR basis. Also, Japanese mills’ price indication was reported at $750/t CFR basis compared with $720/t a week back.
4. Imported HRC offers for Pakistan shoot up – HRC offers to Pakistan recorded a significant increase after the recent hike in export offers from China. Chinese steel mills are offering HRC (SS 400) export offers at $735/t CFR Pakistan and (SAE 1006) at $750/t CFR basis. Last week the offers were in the range of $660-670/t CFR basis.
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