- SteelMint’s India HRC export index unchanged w-o-w at $518/t FOB
- Government removes 15% export duty on non-alloyed steel
- No firm offers from Indian mills
Indian mills continue to remain on the sidelines closely watching overseas market trends. There were no firm offers announced by them. Meanwhile, the bid-offer disparities in the key markets of the UAE and Vietnam continue to weigh on offers from major exporting countries. Thus, SteelMint’s India HRC (SAE1006) export index stands unchanged at $518/t FOB east coast for yet another week.
Market highlights:
1. Vietnamese mills reduce prices, output: Major Vietnamese steel manufacturers, Formosa Ha Tinh (FHS) and Hoa Phat, have reportedly reduced their prices for January and early-February 2023 sales a week back. FHS announced HRC (SAE1006, skinpassed) prices around $555/t CIF Ho Chi Minh City (HCMC). Hoa Phat also reduced its HRC (SAE1006, non-skin passed) to $542/t CIF HCMC.
Moreover, both these mills have cut down their production to counter the slow construction activities in the country and lacklustre overseas demand. Hoa Phat had shut operations at two blast furnaces each in Dung Quant and Hai Duong plants. Also, the mill is mulling suspension of one more BF at the Dung Quat plant. FHS too has cut its crude steel production by 15%.
Last heard offers from Indian mills were around $555-565/t CFR Vietnam a couple of weeks back. While bids from buyers continue to hover at sub-$520/t CFR Vietnam levels for imported HRC.
2. Buying interest continues to stay low in UAE: In the absence of quotes from Indian mills, a few Chinese mills have been active in the UAE market. Indications for Chinese HRC (SAE1006) were heard around $565-570/t CFR UAE as against the previous week’s $575/t CFR. Bid-offer disparity is still a concern for exporting countries in the UAE market. “The few active buyers in the UAE market are still trying to source imported HRC below the $540/t CFR level,” sources informed SteelMint.
Last heard indications from Indian mills were at around $560-580/t CFR levels.
3. European market remains subdued: Last heard indications for Indian HRC (S275) export were around $630-635/t CFR Antwerp, with no firm bids from buyers in the region. Steel consuming sectors of construction and automotive in the EU continue to show lack of buying interest.
Near term outlook:
Indian mills are most likely to come up with fresh offers for the overseas markets in early days of next week, informed credible sources. However, taking note of the bid-offer disparity, industry participants feel that export offers might continue to remain under pressure in the near term.
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