SteelMint is launching its weekly HRC (SAE 1006) FoB India price index from today. The inaugural HRC export price index was at $502/t FoB.
The index has been calculated using an average of T1 and T2 price inputs. Deals confirmed by either a buyer/seller are designated as T1 input while bids, offers and indicative prices are designated as T2 inputs.
For this week’s assessment, two confirmed deals were considered as T1 inputs.
Details of these deals are as follows:
- An Indian mill has concluded a deal for 20,000 t HRC (SAE 1006) to Vietnam at $510/t CFR for end Sep shipments.
- A major private steel manufacturer booked around 12,000 t of HRC to UAE at around $525-530/t CFR basis for Sep end/Oct shipments.
The CFR prices were converted to FoB equivalent by deducting freight cost from the buyer/seller. The average T1 price was calculated as $500/t.
A total of three offers and indicative prices were considered as T2 inputs, with the average price of $504/t. The final price was an average of average T1 and T2 inputs.
What is SteelMint HRC FoB Index – SteelMint publishes prices of HRC cargoes exported from major Indian ports on a FoB basis. Major Indian producers of HRC are JSW Steel,Tata Steel and AM/NS India, with cargoes being shipped from the east and west coasts.
Methodology – Market data, including deals, bids and offers that meet delivery and quality criteria are considered for price assessments. HRC cargoes have to adhere to specific quality requirements to be considered for price calculation.
The highest importance in the price calculation process is assigned to confirmed deals where either a buyer or seller has provided details of the transaction. A buyer or seller can be a producer of steel or a trading firm.
Deals of only reputed and trustworthy producers and trading firms are included in the price collection and calculation process. Confirmed bids and offers are also considered valuable for the pricing process
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