Indian HRC bulk export shipments in Jan’20 is estimated at around 3,92,798 MT, down by 21% M-o-M, based on the data of 20 ports maintained by SteelMint. Exports stood at 4,99,691 MT in Dec’19.
Reasons behind decline in export volumes were as follows:
1. Indian steel mills focused more on domestic sales- Major Indian steel mills raised domestic HRC prices twice in Jan’20 over restocking demand prevailing in the domestic market. At the beginning of the month, major steel manufacturers raised HRC prices by around INR 1700/MT, and the second hike was made of around INR 750-1000/MT.
2. High offers turned Vietnam buyers less interested- Owing to improved demand in the domestic market and limited allocations for exports resulted in higher HRC export offers to Vietnam and other importing nations. Thus buyers were not much interested to procure material from India over competitive offers from China.
As per data maintained with SteelMint on an average basis, Indian HRC export offers stood at USD 520/MT FoB India in Jan’20, up by almost USD 50/MT M-o-M basis against USD 470/MT FoB basis in Dec’ 19.
Also, a lesser number of buyers amid prevailing New year holidays, resulted in limited export bookings.
Bulk HRC exports to Vietnam down by 60% M-o-M- Vietnam continued to be the most preferred destination for HRC exports accounting for 23% of the share. In the month of Jan’20, the Indian bulk HRC export volumes to Vietnam stood at 89,000 MT, which was 2,21,772 MT in Dec’ 19.
Other major destinations were- UAE with 62,163 MT in Jan’20 against 89,000 MT in the previous month. Italy at 9,600 MT in Jan’20 against 65,564 MT in Dec’ 19. Also, exports to Malaysia stood at 30,675 MT in Jan’20 against 31,505 MT in the previous month.
Tata Steel remained major exporter in Jan’20- In Jan’20, TATA Steel’s HRC export shipments stood at 1,75,675 MT, followed by JSW Steel at 1,43,145 MT, and Essar Steel at 63,978 MT.
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