- HRC export index unchanged w-o-w at $583/t FOB
- Indian mills refrain from reducing quotes
- Recession concerns keep UAE buyers on sidelines
- Vietnamese buyers preferring domestic material
SteelMint’s India HRC (SAE1006, boron-added) export index remain stable at $583/t FOB east coast.
Most Indian mills are now focused on the domestic market while they wait for counter bids from importing countries, informed sources.
Anticipation of better domestic market demand amid pre-festive purchases and an increase in inflow of restocking enquiries have propelled mills to raise their list prices a week back. Market participants opine that another round of increases will be annouced for early-October sales in the next few days.
Rationale: Fifteen indicative prices were considered as T2 inputs, while there were no deals to be reported as T1 under the rationale. The final price was an average of T1 and T2 inputs which stood at $583/t FOB. The CFR prices were converted to FOB equivalent by deducting freight costs from the buyer/seller.
Market highlights
1. Competitve prices from domestic mills entice Vietnamese buyers: Vietnam-based buyers continued to prefer domestic HRC amid competitive prices. “Demand in the country is improving gradually. The domestic availability is good and prices are lucrative. Hence buyers are more interested in domestic material,” informed sources in Vietnam.
Indian mills continue to indicate $620-630/t CFR Vietnam. While Chinese offers for HRC (SAE1006) have dropped $5/t w-o-w to $600/t CFR Vietnam. Offers for SS400 stand at around $570-590/t CFR depending upon mills.
2. UAE buyers concerned about recession: Indian steel majors are indicating $630-640/t CFR UAE for the past couple of weeks. Meanwhile Chinese offers to the market have dropped $10/t w-o-w to $610-620/t CFR over devaluation of the RMB.
“Demand is subdued and customers are concerned about recession. Thus, buyers are eyeing lower offers,” informed a UAE-based source.
3. Offers for European market down up to $20/t w-o-w: HRC export indications for the European market have dropped about $10-20/t w-o-w to $670-690/t CFR Antwerp. Although most of the Indian mills are focused on the domestic market currently, a few are still looking to conclude deals in the overseas markets.
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