Indian Flat Steel Makers Hold HRC Export Offers

Limited buying interest from Vietnam and wait for next domestic price revision has compelled Indian flat steel makers to hold HRC export offers.

Indian Flat steel market is in the wavering state in the global and domestic market. In terms of domestic prices, it has witnessed various fluctuations which is driving Indian exporters to keep their HRC export offers stable in the global market.

Current HRC export offers from India are hovering in the range of USD 500-510/MT FoB India. However, the deals in small quantities have been made to Vietnam and Europe on FoB basis.

Although HRC export market has become quite weak owing to softening of demand in the global market. However Vietnam and other countries has also shown weak buying interest and as such no major deals or offers have been heard in the market.

Moreover, domestic prices awaits prices revision in the first week of April, providing enough room for the Indian steel players to have good sales realizations in home market as compared to foreign market.

However, currently HRC (IS2062) 2.5mm-8mm is assessed in the range of INR 40,500-41,000/MT (ex-Mumbai), INR 40,000-40,500/MT (ex-Delhi) and INR 40,500/MT (ex-Chennai). Prices are inclusive of Excise duty 12.5%.

Chinese HRC Export offers Decline on Low Buying Activities
Chinese HRC export markets have witnessed downtrend this week on bearish sentiments prevailing in the global market. Since the demand from overseas buyers remains dull as no major deals have been concluded yet.

Lesser buying activities coupled with volatility in paper market have lead to fall in HRC export offers in China. Therefore, current HRC export offers are heard to be in the range of USD 495-500/MT,FoB China.
 
Global flat steel market overview as on 24 March’17

Source-SteelMint Research