The Indian HRC export index remains unchanged this week as major mills hold back from offering in the overseas market. SteelMint’s Indian HRC export index continues to hover at $873/t FOB east coast. However, there is strong anticipation of export offers moving up shortly in line with a new round of price hikes seen in the domestic market.
“Major Indian steel mills have held back from offering and might come up with increased offers in a few days in light of rallying domestic prices,” a reliable market source said.
Last heard offers to Vietnam were at around $910-920/t CFR basis, while in the UAE, price indications were at around $910-920/t, CFR. But it is uncertain if the same price levels will continue.
Furthermore, Indian mills are waiting for firm bids from UAE-based importers, but the market stands quiet there.
Rationale: Nine indicative prices were considered as T2 inputs while no major export deals were reported as T1. The final price was an average of T1 and T2 inputs which stood at $873/t FOB. The CFR prices were converted to FOB equivalent by deducting freight costs from the buyer/seller.
Global HRC market overview:
1. Chinese HRC export offers down $5/t w-o-w: Chinese mills have lowered their export offers due to losses in the domestic market. Current week’s prices stand at around $970-990/t FOB China as against $975-995/t FOB a week ago.
The export offers shed the increase witnessed in the previous week as demand for Chinese-origin cargoes continued to remain low amid competitive prices from Russia, India and a few other exporting nations.
2. CIS export offers move up w-o-w: Export offers from CIS nations stood at around $820-840/t FOB Black Sea, up $20/t w-o-w over strong demand from Turkey’s domestic market. Last week, offers were around $800-820/t FOB basis.
3. Russian mills increase imported HRC offers to Vietnam: The Russian mills have quoted offers at $880/t CFR Vietnam, which was around $870-880/t CFR basis a week ago. But no offers were heard from China, South Korea and Japan this week.
Furthermore, the Vietnamese buyers are looking at domestic market procurements as Formosa rolls over its prices for Dec’21 shipments and Hoa Phat announced an $8/t cut in its price policy. It is anticipated that demand shall pick as the Vietnamese market is gradually resuming after the easing of lockdowns early in Oct’21.
4. Indian mills book HRCs for export to Nepal: A couple of Indian mills were heard to have booked 3-4 rakes of HRCs to Nepal towards the end of the previous week. The deal was closed at a price range of $860-865/t ex-plant (translating to $880-885/t CFR Raxual border) for end Nov-Dec’21 shipments.
Fresh offers are quoted around $865-870/t ex-plant ($885-890/t CFR Raxual Border).
Leave a Reply