The Indian HRC export index stands largely unchanged compared to the previous week. A few deals were heard lately to Malaysia and Vietnam. SteelMint’s Indian HRC export index stood unchanged at $878/tonne (t) FOB east coast compared to the previous week.
Deals reported:
1. An export deal was reported for 4,000-5,000 t of Indian-origin HRC (S275JR) at $940/t CFR Malaysia for Oct’21 shipment at the beginning of this week.
2. A shipment of 60,000-65,000/t of HRCs (SAE1006) was booked at $890/t CFR Vietnam for Oct’21 delivery towards the end of the previous week.
However, bids from the UAE for Indian HRCs stand at around $900/t CFR, while the Vietnamese buyers are focusing on domestic purchases rather than imported HRC. Also, the market is waiting for Chinese mills to return from national holidays tomorrow, to get clarity on prices.
Rationale: Seven indicative prices were considered as T2 inputs while one export deal to Malaysia was reported as T1. However, the Vietnamese deal did not fall in the window of the current assessment. The final price was an average of T1 and T2 inputs which stood at $878/t FOB. The CFR prices were converted to FOB equivalent by deducting freight costs from the buyer/seller.
Global HRC market overview
a) China’s HRC export offer unchanged, third week in a row: Chinese mills are quoting HRC (SS 400) for exports at $970-1,000/t FOB, unchanged against the previous week. High marine freight rates over the limited availability of vessels and containers along with uncertainty around the export tax announcement remain major woes for Chinese mills.
Moreover, due to the ongoing public holidays in China amid the “Mid-Autumn Festival”, the market has been quiet.
2. Vietnamese HRC importers silent: A few major exporting countries, such as China and Japan, were observing public holidays earlier this week. Thus, no firm offers were heard. Also, buyers are preferring domestic purchases. Meanwhile, there are disruptions due to new Covid-19 cases still being reported and extended lockdowns.
Offers from major exporting nations
1. Indian mills continued offering at $890-900/t CFR basis.
2. Russian offers hover around $870-890/t CFR basis.
3. No major activities in Nepal, festive mood sets in: Activity in the country’s HRC market has slowed down with the Durga Puja festivities looming ahead. “Most participants are gradually exiting the market as the festival dates are coming closer. Also, the market has remained largely muted on seasonal disruptions in the past few weeks,” SteelMint learned from reliable market sources.
Last offers heard from Indian mills were around $855-860/t CFR Raxual border.
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