Indian steel manufacturers have booked huge quantities for exports in the month of August’16, for which shipments will be made in September’16.
According to market participants, almost 650,000 MT steel (HRC, CRC, GI, Coated) has been booked by major Indian steel players. These numbers were approximately 2,00,000 MT in July and 2,10,000MT in June, according to data maintained by SteelMint.
Most of the exports are made to Europe and South East Asian Countries. Steel exports from India are increasing M-o-M owing to the following reasons:
1. Higher Chinese export offers
2. Trade restrictions in European and South East Asian countries for Chinese steel
3. Stable currency
*E- Estimated, *P-Projected
Export Offers from India likely to Increase
Export offers from Indian manufacturers are likely to increase in September owing to improved demand and higher Chinese offers. Also rising coking coal prices, which has increased cost of production, will prompt manufacturers to raise their offers.
Previous offers for HRC from Indian manufacturers were in the range of USD 390-400/MT FOB India, which is likely to increase to USD 405-410/MT FOB India.
Domestic Flat Prices May Increase
Increasing exports and falling imports (due to anti dumping and safe guard duty) will support domestic prices. Market participants expect domestic prices to be increased in September.
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