- Indian HRC export deals concluded with the EU and ME
- Hoa Phat cuts monthly HRC prices in Vietnam
BigMint’s India HRC (SAE 1006) export index (for the Middle East and Vietnam) fell w-o-w to $593/tonne (t) FOB against $596/t FOB east coast India. Export offers to the Middle East and Vietnam fell by $5/t w-o-w which pulled down the index. Moreover, competitive Chinese prices in the Middle East and Vietnamese prices in Europe prompted Indian mills to lower their export prices.
Rationale: One confirmed deal (T1) was reported in this publishing window. Eight indicative prices were considered as T2 inputs out of nine inputs received. The final price was an average of T1 and T2 inputs, which stood at $593/t FOB. CFR prices were converted to FOB by deducting freight costs from the buyer or seller.
Key market updates:
1. Indian HRC export offers to EU drop w-o-w: Indian HRC export prices to Europe (S275, 3mm) dropped by around $15/t w-o-w amid recent deals. Current offers are around $665-675/t CFR Antwerp ($615-625/t FOB east-coast India) against $680-690/t CFR Antwerp last week. BigMint learnt two deals of around 10,000 t at $675/t CFR Antwerp and around 15,000-20,000 t at $665/t CFR Italy concluded last week for April shipments. Offers from other Asian suppliers notably from Vietnam, Taiwan and Japan were heard at similar prices level of $665-675/t CFR.
As for domestic market, European steel mills are facing difficulties selling HRC due to a pessimistic price outlook. While production has increased with blast furnace restarts, buyers are holding off on purchases anticipating lower prices.
2. Indian HRC export offers to ME slightly down: Indian HRC export offers to the Middle East went slightly down by $5/t w-o-w to $620-625/t CFR against $625-630/t CFR amid recent deals concluded. An Indian steel major has booked 20,000 tonnes (t) HRC at $625/t CFR UAE last week for March 2024 shipment, informed a reliable source. Chinese HRC prices remained range-bound at $595/t CFR UAE, while, tier-2 mills are offering around $580-590/t CFR this week, informed sources.
3. Vietnam imported HRC offers fall on lower domestic offers: China’s HRC (SAE1006) offers fell to $575-585/t CFR, down from $590-595/t CFR last week. Indian HRC indicative offers are around $605-610/t CFR HCMC, contributing to the overall decline in imported HRC prices in Vietnam. This comes amid competitive domestic prices. For instance, Vietnamese steel giant, Hoa Phat has reduced prices for HRC (SAE1006, non-skinpass) by $10-15/t for May-June 2024 sales, following a similar move by Formosa Ha Tinh Steel (FHS) earlier this week. The revision brings down effective prices to VND 14,690-14,720/kg ($596-597/t) CIF southern region, compared to the previous price of VND 14,852/kg ($610/t) excluding VAT.
Outlook:
Indian HRC export prices are facing downward pressure as China and Vietnam are offering HRC at competitive prices in the Middle East and Vietnam respectively. Moreover, China’s SHFE HRC futures fell by RMB 27/t ($4/t) w-o-w to RMB 3,874/t ($538/t) against RMB 3,901/t ($542/t). Furthermore, the same remained range-bound on d-o-d basis at 3,873/t ($538/t) a day ago.
Indian mills are likely to face continued pressure in the near future amid weaker global market sentiments. Moreover, market participants are awaiting Indian mills to announce domestic HRC prices.