Indian HRC exports are gaining strength over dull domestic demand. Market sources reported to SteelMint that export quantity of about 1,25,000 MT HRC has been booked by major Indian steel makers in last 20-25 days for Mar & Apr’17 shipments. Majority of the export shipments are made to Vietnam.
As per trade sources, the average export price of the deal stands at around USD 500-503/MT, CFR Vietnam. Considering freight from India to Vietnam to be around USD 10-12/MT, export prices would come around USD 488-490/MT, FoB India.
Which all factors have boosted HRC exports from India ?
1. Increasing steel output of Indian steel biggies – All the major Indian steel makers have reported high quarterly steel production numbers in Q3 FY17. Crude steel output of Indian steel biggies in Q3 FY17 were as follows : SAIL (3.6 MnT, up 3% Q-o-Q); Tata Steel (3.1 MnT, up 10% Q-o-Q) and Essar Steel (1.41 MnT, up 5% Q-o-Q). JSW Steel reported highest ever monthly crude steel output of 1.385 MnT in Jan’17, up by 7% M-o-M.
2. Prevailing weak demand in domestic market – Demand in India’s domestic flat steel market continues to remain dull with price corrections in traders market.
3. High Chinese HRC export offers remain unattractive for Vietnam importers – Presently Chinese HRC export offers are heard at around USD 510/MT, FoB China. Thus, the imported Chinese HRC offers to Vietnam remain comparatively high than that of HRC having Indian origin. Hence being cost effective, Vietnam based importers are preferring HRC of Indian origin.
Increasing output and dull domestic demand has forced Indian steel makers to cater to the export market.
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