SteelMint’s Indian HRC (SAE 1006) export index stands at $927/t FoB East-coast basis, up by $37/t w-o-w against $890/t FoB basis. Increased preference for Indian HRC cargoes amid uncertainties on Chinese export rebate cuts has favoured Indian mills to raise offers.
Indian steelmakers continue to keep HRC export offers higher following an uptrend in domestic steel prices. Major steel mills are offering HRC export at $940-950/t CFR Vietnam for June deliveries, up by $20-25 against last weekend. Last week a Western India-based mill has booked around 30,000-40,000t HRC export deal to Vietnam at $925/t, CFR Vietnam for May-end June shipments, sources have confirmed to SteelMint.
European market continues to see a price hike in both domestic and imported HRC market. Last week, ArcelorMittal, Europe increased its coil prices by Euro 20/t. The current price of HRC stands at around Euro 920/t, CRC and hot-dipped galvanized at Euro 1,070/t. Bullish sentiment across the European market and supply shortage led to frequent hikes in coil prices. Also, market sources anticipate that prices will increase further in the near term. Price indications for Indian HRC export for Europe are at $1,015-1,020/t CFR basis.
Rationale: Seven indicative prices were considered as T2 inputs, with an average price of $927/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-
a) Chinese HRC export offers- Major Chinese steel mills are offering HRC at around $875-880/t FoB basis up by over $55/t w-o-w basis as against $820-840/t FoB basis a week back. Furthermore, a few tier-I mills are offering at $900-920/t FoB basis.
However, offers remain limited due to uncertainty on export rebate cut announcement by the government. Thus, possible losses have made importers shift their preference to other exporting nations.
b) CIS export offers continue the uptrend on optimistic overseas demand- The offers for the week have increased by around $40-60/t w-o-w on improving overseas demand and global shortage. The current week assessed offer stands at $875-915/t FoB Black Sea, contrasted against $830-840/t FoB basis a week ago.
c) Vietnam’s imported HRC offers rise post- Formosa’s price announcement- The domestic integrated steel producer Formosa Ha Tinh has recently announced June delivery offers at $910-912/t for HRC (SAE 1006, skin pass), significantly up by $140-145/t against May delivery prices.
This led to a further increase in imported HRC offers with China raising its prices by over $70/t w-o-w to $930-940/t CFR Vietnam as against $860/t CFR basis a week back. Tracking this, Indian steel producers also increased their offers to $940-950/t CFR basis after booking HRC for export at $925/t CFR basis for May-Jun ’21 delivery in the previous week.
d) Nepal importers book two rakes of HRC from India- Nepal importers booked around two rakes of HRC from India at around $800/t (ex-plant) equivalent to $820/t CFR Raxual border for May-June shipments. Meanwhile, the new offers from mills are being heard at around $840-850/t (ex-plant) equivalent to $850/t CFR Raxual border.
e) Imported HRC offers to Pakistan increase further- Major Chinese steel producers are offering HRC to Pakistan-based importers at a $900/t CFR basis, higher by $50/t from $850/t CFR basis a week back. Japanese steel mills are aiming for $1,000/t CFR basis as against the previous offer of $920/t CFR basis.
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