Indian mills are exploring export opportunities for re-bars as domestic demand remains subdued on seasonal slowdown. According to data maintained by Steelmint, two bulk shipments were reported in the month of July for 21,000 MT and 40,000 MT each from India’s south coast. These cargoes belong to JSW steel and likely to be shipped to Hongkong and Singapore.
No bulk shipments were reported in the month of June’18. Indian bulk re-bar exports in 2018 (May-Jul) recorded at 66,100 MT against 10,400 MT in 2017, according to data maintained by SteelMint based on vessel loading details captured from 18 major Indian ports.
Indian mills are quite active in SE Asian market as Chinese exports remain comparatively low due to ongoing production cuts. Indian steel exports were reported at 10.61 MnT in 2017. Out of which flat was 9.41 MnT and longs at 1.2 MnT.
“Domestic demand is not very encouraging due to monsoon season. Big mills are exploring export opportunities at around $550/t FOB India levels. Although buyers are anticipating price level of $535-540/t FOB India.” mentioned an exporter based in Mumbai.
JSW steel long steel sales drop 16%
JSW steel reported a fall of 16% in sales volume (Q-o-Q) for long steel in the recent quarterly result. Company reported sales of 0.87 MnT during Apr-Jun’18 against 1.04 MnT during Jan-Mar’18. Although company believes that long steel demand will increase from October from government initiatives from infrastructure activities.
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