- HRC prices increase, CRC prices remain range-bound
- Imports outpace exports
HR coil prices exhibited stability within ranges across the majority of markets, with the exception of Kolkata where prices witnessed an increase of INR 950/t ($11/t) to a new range of INR 51,500-52,500/t ($617-629/t). Cold-rolled (CR) coil prices, however, remained relatively stable across the board, with Kolkata experiencing a more modest increase of INR 750/t ($9/t) to a new range of INR 58,500-59,500/t ($700-712/t). It’s important to note that limited trading activity continued to be observed amidst news of mills undertaking shutdowns.
As mills strategise for shutdowns in the present and forthcoming months, notable maintenance activities are underway. Specifically, Sail Bokaro’s hot strip mill (HSM) has been undergoing maintenance since 1 April, while Tata’s cold rolling mill (CRM) at BSL, Angul, is scheduled for maintenance until 25 April. Additionally, other mills have also slated maintenance operations for the upcoming months. Consequently, this has led to the withdrawal of export offers, with potential implications for the domestic market awaiting observation.
BigMint’s benchmark assessment (bi-weekly) for HRC (IS2062, Gr E250, 2.5-8mm) prices increased by INR 350/t ($4/t) to INR 52,350/t ($627/t) on 16 April 2024, compared to the previous week. Also, CRC (IS513, Gr O, 0.9mm) prices were up by INR 500/t ($6/t) to INR 61,800/t ($740/t) during the same period. These prices are quoted ex-Mumbai, excluding 18% GST, and are for cut-to-length (CTL) deliveries. (INR 1 = USD 0.0119729 ; USD 1 = INR 83.522)
Prices for hot-rolled plates (IS2062, Gr E250, 20-40mm) remained stable on a weekly basis at INR 57,100/t ($684/t). Ex-Mumbai, these prices fall within the range of INR 56,000-60,000/t ($670-718/t) and are exclusive of 18% GST.
Market updates:
1. Domestic trade-level prices remain stable within range: The trade market continued to see sluggish trading activity, owing to limited demand at lower price levels.
“Market activity remains subdued, with buyers seeking lower prices, according to a market participant. While upcoming mill shutdowns could provide some upward pressure on prices,” suggested a market participant. “However, long-term sustainability due to potentially sufficient stockpiles held by mills. This suggests a potential tug-of-war between limited supply due to shutdowns and existing mill inventories, with the ultimate price direction yet to be determined,” he added.
2. Indian HRC export prices remain range-bound: BigMint’s India HRC (SAE 1006) export index (for the Middle East and Vietnam) remained range-bound w-o-w to around $560/t FOB east coast India.
Indian HRC export prices to the Middle East dipped by $5/t w-o-w to $595-600/t CFR, while Chinese offers remained steady. Chinese tier 1 mills’ offers hovered around $560-565/t CFR UAE, with tier 2 mills offering $540-545/t CFR. ME market sentiment was subdued due to price declines and regional tensions.
Vietnamese imports from China decreased by $10-15/t CFR, with Formosa Ha Tinh cutting prices by $10/t for June-July shipments. Vietnamese importers are cautious amid global uncertainty.
Indian HRC export prices to Europe fell by $5-10/t w-o-w to $630-635/t CFR Antwerp.
3. Imports outpace exports: India’s imports of bulk hot-rolled coil (HRC) and plates were at 1,76,740t till 15 April 2024. Total import volumes reached 3,81,794t, in March 2024 while it was 4,65,276 t in February 2024. India’s export of bulk hot-rolled coil (HRC) and plates were 1,07,788t till 15 April 2024, according to vessel line-up data tracked by BigMint. Total export volumes reached 6,90,197t, in March 2024 while it was 6,42,422t in February 2024.
