- SteelMint’s India HRC export index at $545/t FOB, up by $27/t w-o-w
- Govt removes 15% export duty on non-alloyed steel
- Fresh indications & deals heard for Middle East markets
- Low buying preference persists in European, Vietnamese markets
Indian mills unveiled fresh HRC export indications to Middle East markets following removal of the 15% export duty from 19 November 2022. SteelMint’s India HRC export index increased by $27/t w-o-w to $545/t FoB east coast this week. However, Indian mills have refrained from quoting any offers to the Vietnamese and European markets and are waiting for buyers to raise their bid levels.
Rationale: Eleven indicative prices were considered as T2 inputs, while there were no deals reported under T1. The final price was an average of T1 and T2 inputs which stood at $545/t FOB. CFR prices were converted to FOB equivalent by deducting freight costs from the buyer/seller.
Market highlights
1. Lower bids keep Indian mills away from Vietnamese market: Indian steel mills continue to hold back from offering in the Vietnamese market amid low buying price ideas. Bids for imported HRCs lingered around $520-540/t CFR levels in Vietnam, informed reliable sources. Meanwhile, Chinese mills were heard offering at $555-565/t CFR Vietnam, identical to the previous week’s $560/t CFR.
Sluggish performance of the construction sector and lacklustre trades on the global platform continue to weigh on the demand for imported HRCs in Vietnam. Furthermore, Vientamese mills have cut down on output volumes as per local media reports, while seeking export opportunities. Few export deals were heard concluded for delivery to Pakistan and Europe in the recent past.
2. Buying interest continues to stay low in UAE: Indian mills floated export indications for SAE1006 at around $610/t CFR this week. Meanwhile, a leading private Indian steel mill has booked about 15,000-20,000t of HRCs (S235) for export to the UAE. The deal was sealed at $610/t CFR for delivery in end-December or early-January.
Offers from China for HRCs (SAE1006) are heard at around $580-590/t CFR- up from the previous week’s $540/t CFR. “Bearishness is still there with bids last week at around $540/t CFR,” sources informed SteelMint.
There were some quotes heard for the Turkish market as well, at around $580/t CFR from India.
3. European market remains subdued: Indian mills are still awaiting firm bids from the European buyers. “Removal of the export duty will open up avenues for exports to the European market. However, the same is subject to the buyers’ preference and bids as a few Southeast Asian countries are quoting cheaper,” informed reliable sources.
Last heard indications for Indian HRC (S275) exports were at 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.
Outlook: In the short term, Indian steel exports are highly unlikely to show a spurt. However, some sources indicate that there are chances of domestic HRC prices in northern Europe bottoming out, which may mean prices could rise from hereon and push up import volumes.
Leave a Reply