- HRC export index at $716/t FOB India
- Export offers to UAE rise from China and India
- Deals concluded to Europe
- Vietnamese buyers waiting for price announcements from domestic mills
SteelMint’s India HRC (SAE1006) export index stood at $716/t FOB east coast this week, up $8/t FOB w-o-w. The index rose on the back of higher offers for the UAE market. However, Indian mills are yet to start quoting to Vietnamese buyers amid anticipation of improved realisations in the near term.
Rationale: No confirmed deal (T1) was reported in this publishing window. Nine indicative prices were considered as T2 inputs. The final price was an average of T1 and T2 inputs, which stood at $716/t FOB. CFR prices were converted to FOB by deducting freight costs from the buyer or seller.
Market-wise updates:
1. Indian mills raise offers for UAE: Indian mills are currently quoting $750-760/t CFR against $740-745/t CFR last week. This is due to the increase in Chinese offers for the UAE. Imported Chinese HRC offers into the UAE rose by up to $10-20/t w-o-w to $710-730/t CFR this week from $710/t CFR last week. “The market is slow with respect to HRC imports as the current levels are not getting accepted by buyers. Thus, no deal was concluded at these levels,” informed a local source.
2. Vietnamese buyers await Formosa’s domestic offers: Vietnamese buyers are on the sidelines, waiting for price announcements from the domestic mills – Formosa Ha Tinh (FHS) and Hoa Phat – for May and early-June. Last month, FHS had raised prices by $59/t m-o-m for HRC (SAE1006, skinpass) to $699/t CIF Ho Chi Minh City (HCMC) for April and early-May. The company had exhausted its supplies for the period despite an increase in prices, local sources informed. Hoa Phat had announced an increase in its HRC (SAE1006, non-skinpass) prices to $683/t for April and early-May sales.
Chinese HRC (SAE1006) are heard offered at $700-705/t, stable against last week. Offers for HRC (SS400) stand at around $690/t CFR. However, Indian mills are more focused on the European market amid higher realisations and are waiting to float fresh quotes for April-May shipments to Vietnam, sources hinted.
3. Indian HRC export prices up in recent deals for EU: A private Indian steel major has booked around 25,000 t of HRC for export at $830/t CFR Antwerp last weekend for end-April or early-May shipment. Fresh offers for HRC (S275) were floated at $830-840/t CFR Antwerp, informed sources. This is up $20/t as against last week’s $810-820/t. Indian mills are actively seeking export opportunities to Europe.
Outlook
Limited export allocations and better domestic realisations are likely to keep the India HRC export index supported in the near term. Deals getting concluded to the European market at higher price levels should push offers higher in other regions, opined sources.
Chinese steel major Baosteel has increased its domestic HRC prices by RMB 200/t ($29/t) for May sales yesterday, keeping sentiments buoyed in the overseas markets. Another supporting factor is the increase in Chinese HRC futures. HRC futures (May 2023 contracts) on the SHFE settled higher by RMB 122/t ($18/t) w-o-w to RMB 4,463/t ($650/t) on 14 March.
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