- HRC export index unchanged at $708/t FOB
- Demand to improve in Middle East markets
- Deals reported for Europe and Nepal
SteelMint’s India HRC (SAE1006) export index remained unchanged at $708/t FOB east coast this week. Indian mills continued to hold back offers for Vietnam. On the other hand, indications for the UAE market remained unchanged w-o-w. There have been no export deals reported for these two countries in the recent past.
Rationale: No confirmed deals (T1) were reported in this publishing window. Nine indicative prices were considered as T2 inputs. The final price was an average of T1 and T2 inputs which stood at $708/t FOB. CFR prices were converted to FOB by deducting freight costs from the buyer or seller.
Market-wise updates:
1. Demand from UAE to improve: Indian mills are hoping for a recovery in the demand from the UAE in upcoming weeks. “Demand from the UAE still has got room for improvement. Indications from Indian mills continued to hover at around $740-750/t CFR,” hinted a reliable source. Meanwhile, imported Chinese HRC offers remained unchanged at $700/t CFR w-o-w from China.
2. Mills continue to hold back offers for Vietnam: Indian exporters are more inclined towards high realisation fetching markets of the Middle East and Europe. Meanwhile, Chinese HRC (SAE1006) offers were heard at $675-685/t CFR this week. Offers from Japan were heard at around $720-725/t CFR, up from the last week’s $700/t CFR. Furthermore, last week, Formosa Ha Tinh (FHS) announced its domestic HRC (SAE1006, skinpassed) prices at $699/t CIF HCMC for April and early-May 2023 sales. Hoa Phat is expected to announce its price in the next few days. Thus, Indian mills are waiting for Chinese offers and Vietnam’s domestic prices to increase further in the market.
3. Export deal signed for Europe: Buying interest for imported HRCs seems to be improving amid elevated domestic prices. A private Indian steel major has booked around 40,000-50,000 t of HRCs for exports at $790-800/t CFR EU for April, 2023 shipment. The deal was concluded last week, as per sources. Fresh offers for HRCs (S275) were floated at $800-810/t CFR Antwerp, informed sources.
4. Deal concluded for Nepal: An export deal for 4 rakes of HRCs were heard concluded for Nepal last week. The deal was sealed at $715-720/t CFR Raxaul border for delivery in end-March or early-April 2023. Moreover, offers are still hovering at $710-720/t CFR in the market. Buyers in Nepal are making cautious procurements and are closely watching domestic price announcement from Indian mills, sources highlighted.
Outlook
Indian HRC export offers are likely to remain supported amid rising global HRC prices and rally in futures market. Chinese HRC (May 2023 contract) futures on SHFE settled at RMB 4,293/t ($624/t) on 21 February as against RMB 4,111/t ($598/t), a week ago.
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