Indian steel exporters are reported to have withdrawn last HRC offers of $1080-1100/t to Vietnam even as global prices continue to fall. In the current situation, these offers have become irrelevant. Vietnam contributed to about 13% of India’s total exports in FY ’21.
It has also been heard that mid-sized mills in China are offering HRC to Vietnam (one of the largest importers of HRC in the world) at around $920-930/t CFR levels for July shipments. Although, this comes with a condition that in case Chinese government imposes any export tax on steel, it would be on the buyer’s account. However, no fresh offers have been reported from larger mills like Bao Steel.
The global market still remains inactive as Chinese steel and iron ore futures continued to fall yesterday. SHFE rebar future October contracts dropped further to reach RMB 4,667/t ($730/t). According to some media reports, China’s banking regulator has asked lenders to stop selling investment products linked to commodities futures to retail buyers in order to curb the volatility in futures.
Indian spot steel market also continues to fall. SteelMint’s daily billet index closed at INR 40,600/t exw Raipur,down by INR 300/t. However, trade volumes improved as compared to trades in the last few days.
An auction of 8,500 mt pig iron hosted by SAIL (Bokaro), failed to get any bids, despite the company having reduced prices by INR 2,000/t from last auction.
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