With rise in global HRC offers coupled with good sales realizations, Indian manufacturers make a come back in export market.
After being hit by overcapacity, falling demand and slumping prices in 2015, current year is turning out to be quite favorable for global steel industry.
Post Chinese Lunar New Year Holidays in February, steel prices in the country are on a ceaseless surge against the backdrop of production cut, low inventories, and increase in domestic demand.Following this, steel prices in other countries like Korea, Japan, and CIS countries have also increased considerably.
Indian steel manufacturers which had become inactive in the international market due to lower sales realizations from export sales have once again entered the export market.
SteelMint has heard that currently HRC (2.5mm) is being offered at USD 450-455/MT, FoB India basis and one of the Indian steel majors has even booked an export order of 15,000-20,000 MT quantity in Malaysia.
At current HRC export rate of USD 450-455/MT, net sales realizations from exports is in the range of INR 29,500-30,000/MT whereas domestic sales realizations is in the range of 29,500-30,500/MT.
China’s HRC offers are currently assessed at USD 430/MT, FoB China whereas South Korean and Japanese HRC offers are in the range of USD 440/MT, FoB basis.
Although India’s HRC export offers are higher than what other countries are offering, steel manufacturers based in other countries are booked for June-July export deliveries whereas Indian exporters are ready to provide the material within desired time period.
Leave a Reply