SteelMint’s India HRC (SAE1006) export index remained stable at $708/t FOB east coast this week. Indian mills are likely to come up with higher offers for Vietnam. On the other hand, indications for the UAE market are on the lower side. There have been no export deals reported to these two countries recently.
Rationale: No confirmed deals (T1) were reported in this publishing window. Eight indicative prices were considered as T2 inputs. The final price was an average of T1 and T2 inputs, which stood at $708/t FOB. CFR prices were converted to FOB by deducting freight costs from the buyer or seller.
1. Indian mills face competition in UAE: Buying interest in the UAE moderated this week for Indian-origin HRC. Indications from Indian mills were at around $730-745/t CFR, down $5-10/t,” a source informed. “Buyers are trying to negotiate at lower levels amid availability of cheaper alternatives,” another source hinted. But, on the other hand, Indian mills are not likely to reduce their prices amid limited allocations, the souce added. Meanwhile, Chinese mills are gradually increasing their offers. This week, Chinese HRC (SAE1006) offers edged higher $10/t to $710/t CFR.
2. Mills likely to come up with offers for Vietnam: Vietnam’s imported HRC prices have been on a rise from China over the last few weeks. Prices were at around $658/t CFR Vietnam on 14 February and presently hovering at $690-695/t CFR. Thus, market participants are of the view that Indian mills are likely to come up with higher offers for Vietnam in the coming week.
3. European buyers quiet, offers stable: European buyers have moved to the sidelines temporarily after having booked good volumes in February from Indian mills. The last deal was for 40,000-50,000 t concluded towards mid-February. Previously, a few more deals had been closed in the first and second weeks of February. Thus, there is a temporary lull in the market as buyers are stocked up and are now keenly watching the movement of prices, a source informed. Offers from India for HRC (S275) were assessed at around $800-810/t CFR Antwerp, unchanged w-o-w.
Outlook
The India HRC export index is likely to stay supported in the near term amid limited export allocations and better domestic realisation. Indian mills are likely to increase domestic prices soon for March sales, which should keep export prices supported.
Leave a Reply