No Firm Offers from Indian HRC Exporters

Indian HRC exporters continue to hold offers despite lower offers from other global suppliers.

Despite falling HRC offers from China, Japan, Korea and Russia, Indian exporters continue to hold their offers at high prices. Current offers for 2.5 mm HRC are assessed in the range of USD 390-395/MT, FoB India.

Chinese HRC are being offered at around USD 310-315/MT. Whereas, offers from Japan and Korea are in the range of USD 330-340/MT. Offers from CIS countries are around USD 335/MT (all prices are mentioned on FoB basis).

High cost of production and better sales realizations in domestic market have compelled Indian manufacturers to focus in local market. The sales realizations from export offers are around INR 24,000-24,500/MT. Whereas, domestic realizations are in the range of INR 27,000-27,500/MT.

2.5 mm HRC prices as on 7 Aug’15

Source: SteelMint Research

India’s second largest steel manufacturer, JSW Steel reported in its Q1 FY16 result that its export fell to 14% of the total sales. While, its domestic sales increased by 27% Y-o-Y. As per market sources, global buyers are preferring Chinese, Korean and Japanese material which is much cheaper.

India’s total HR coil and plates export in July was about 150,000 MT and major export was made to Iran and Italy, Essar Steel being the largest plate exporter to Iran during the period.

Source: SteelMint Research