SteelMint: India HRC export market quiet amidst holidays, index stable

• SteelMint’s India HRC export index unchanged at $597/t FOB
• Limited deals amid festive mood
• Major mills withdrew export offers from Vietnam and ME

SteelMint’s India HRC (SAE1006) export index stands unchanged at $597/t FoB east coast as markets are mostly inactive amid festive holidays. “Christmas and New Year holiday mood have kept most of the overseas markets inactive this week,” informed reliable sources.

Meanwhile, Indian mills had already withdrawn offers from the Middle East and Vietnamese market last week.

Rationale: Eight indicative prices were considered as T2 inputs while there were no trade deals to be considered as T1. The final price was an average of T1 and T2 inputs which stood at $597/t FOB. CFR prices were converted to FOB equivalent by deducting freight costs from the buyer/seller.

Vietnamese buyers are focusing on domestic HRC supplies at present amid lucrative pricing compared with the imported ones. Moreover domestic mills enjoy shorter delivery lead times making them even more economical from those of the overseas suppliers. Chinese mills offered HRCs (SAE1006) at $610-615/t CFR Vietnam, as against previous week’s $615-620/t CFR. Last heard offers from India were at $620-630/t CFR.

Exporters might try opening up with higher offers in the Middle East markets finding buyers accepting deals at higher prices in the past couple of weeks. “Offers have increased in the last two weeks. However, rising covid cases in China remains a point of concern and we are closely observing the market,” informed reliable sources from UAE. Last heard offers from India were around $640-650/t CFR UAE.

In Europe, domestic mills have been seen raising prices ahead of the New Year. Anticipation of service centers and other buyers to come out replenishing their depleted stock levels is the lead reason. Buying interest in the market has improved by about Euro 20-30/t ($21-32), w-o-w, to Euro 650-680/t ($693-725) ex-works as per media reports. Indian HRC indications to Europe are still being heard around $670-680/t CFR. (Euro 1  = USD 1.06548, USD 1 = Euro 0.938542)

Outlook: It is likely that the global trade market activities shall pick up along with export offers post the New Year holidays. However, participants are closely tracking the Covid situation in the major exporting countries amid the risk of infection and logistics conditions, highlighted a few sources.