Indian Exporters Reduce HRC Offers to Match Global Prices

Indian HRC manufacturers are heard to have reduce export offers by USD 15/MT this week in order to match global prices.

Since past one month, Indian manufacturers have been holding offers in anticipation that government will impose safeguard duty on steel import, which will give boost to domestic demand.

According to market sources, current offers for 2.5 mm HRC are around USD 375/MT, FoB Indian port, which was last offered at USD 390-395/MT, FoB. Sources mentioned that current offers are still higher by USD 30-40/MT compared to Korean, Japanese and Chinese suppliers.

“Current offers from Korean and Japanese mills are around USD 330-340/MT, FoB. Whereas, Chinese mills are offering at USD 315/MT, FoB and Russian at around USD 335/MT, FoB. Indian export offers are still higher and we do not see much of transaction taking place at these prices”, said an executive at one of the largest trading houses.

Indian export was recorded at 0.15 MnT in July, 0.19 lakh MnT in June and 0.31 lakh MnT in May.

Depreciating Chinese Yuan a concern for Indian steel exporters

Indian steel exporters are worried that depreciating Chinese currency, Yuan, will give Chinese exporters an extra edge to price their material.

On Wednesday, China devalued yuan for second consecutive day, leading to over 4% drop in last two days. Devaluation of Yuan has strengthened the US Dollar whereas many other currencies have fallen sharply.

Russian ruble is down by 2.55% whereas Indian rupee is down by 1.66% against US dollar in last 2-days.

2.5 mm HRC prices as on 12 Aug’15

Source: SteelMint Research