Indian export offers for commercial-grade hot rolled coil (HRC), have fallen by at USD 5-10 per tonne this week on lower offers from China, Russia and Ukraine.
Indian HRC export offers have come down to about USD 390 per tonne FOB India main port for July/August shipments, compared to last week during which offers were at USD 400-405 per tonne FOB.
Indian exporters cut their offers owing to intense competition from Chinese and CIS based suppliers. Offers for Chinese HRC are assessed at USD 325-330/MT, FOB China main port and from CIS region at USD 350-360/MT FOB Black Sea.
Increased Production & Low Demand in Domestic Market
Three months back in Feb’16, when prices soared in the international market, Indian mills shifted their focus to exports given good sales realizations from export market. This move also intended to create tight supply situation in the domestic market so that domestic prices can be pushed up further.
However, export offers in global market started falling from late May’16 which forced Indian manufacturers to move out of export market.
Increased production from Bhushan Steel , Essar Steel and JSW Steel led to increased supplies in the domestic market. Also Tata Steel’s Kalinganagar plant is expected to commence HRC production soon which may further increase supplies in the market.
With sluggish demand in domestic market, Indian manufacturers are again back in the export market with lowered prices.
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