Indian HRC export market continues to remain silent since mills are majorly focusing on domestic sales over higher price realizations. Mills have cut their export allocations drastically and are less interested in offers in the overseas market except for Europe.Market participants reported no firm Indian HRC price indications were reported for Vietnam.
“Imported HRC prices are quite low in Vietnam and that’s the reason the activity is very slow and mills are not offering for Feb-Mar shipments”, SteelMint learned from major HRC exporter.
Indian mills are eyeing HRC export offers mainly for Europe on higher price realizations. A major Indian steel mill was heard offering HRC at around $840-860/t CFR Europe. However, no major deals have been concluded yet.
Since mills are not offering to Vietnam and UAE markets, SteelMint has rolled over its Indian HRC (SAE 1006) export index to a $785/t FoB basis.
Also, Indian mills have raised domestic HRC prices twice in Jan’21 on robust domestic demand from the auto and consumer durable sector and higher landed cost of imports.
Global HRC market overview-
1.Chinese mills cut HRC export offers steeply to entice importers-
The major steel manufacturers have cut their export offers significantly by $70/t w-o-w to $640-650/t FoB China. Last week’s offers stood at a $650-710/t FoB basis.
Volatility in the futures market led to a decline in offers. Also, weak buying activities in the domestic market prompted mills to cut their export prices. Further, the pressure to destock before the beginning of Chinese New Year from 12th Feb ’21 softened buying sentiments.
Buyers in both domestic and overseas markets have adopted a wait-and-watch approach in anticipation of further decline in prices in the near term.
2.CIS origin HRC export offers fall over limited buying interest-
Mills in the CIS region cut their offers by $20/t this week as buyers showed limited interest in trades due to higher prices. Along with this, the steep decline in Chinese HRC export offers made the buyers anticipate a further decline in export offers. As per the current week’s assessment, export offers stand at $765-785/t FoB Black Sea, which was $785-790/t week back.
3.Russia resumes HRC offer for Vietnam-
After remaining quiet for a long time, Russian steel manufacturer MMK Steel is offering HRC at $730/t CFR Vietnam. The dampening of domestic market demand due to increasing prices led to a shift to the export market with higher realizations.
Chinese mills continued to offer at $710-730/t CFR basis however no deals were confirmed. Furthermore, offers from South Korea were heard at a $770-780/t CFR basis.
Few Chinese traders were even heard of selling position HRC (SAE 1006) cargoes at around $685-690/t CFR Vietnam levels.
4.Pakistan mills book imported HRC –
The Pakistani importers were heard to have booked 20,000 t HRC from Taiwan this week. The deal was concluded at $780/t CFR Pakistan for Apr ’21 delivery. Meanwhile, a major Japanese steel mill booked around 20,000 T HRC at $800/t CFR basis.
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