The HRC export index declined this week by $15/t with a few Indian mills quoting lower in the Vietnamese market alongside a downtrend in global offers. SteelMint’s India HRC (SAE1006) export index dropped to $800/t FOB east coast.
Meanwhile, demand from major importing countries continued to remain low.
Rationale: Seven indicative prices were considered as T2 inputs while no major export deals were reported as T1. The final price was an average of T1 and T2 inputs which stood at $800/t FOB. The CFR prices were converted to FOB equivalent by deducting freight costs from the buyer/seller.
A few mills were heard to be testing the market in Vietnam with offers at around $820-840/t CFR. However, others have held their offers at $855-860/t CFR levels. The buying interest is low with competitive offers from China at around $810/t for Jan’22 shipments, while a constant buzz is around $760-765/t CFR for Apr’22 delivery. Meanwhile, buyers are biding their time in expectation of a further decline in offers from exporters and resorting to domestic procurements at present.
A few mills quoted at around $850-860/t CFR UAE this week. However, the market there has remained inactive this week ahead of the Commemoration and National Day holidays from 1-3 Dec’21. There were no bids or inquiries heard in the market. Last week, bids were heard at around $850/t CFR.
Demand in Nepal also has remained poor, with limited inquiries and buyers turning observant over the price revision announcement by Indian manufacturers for Dec’21 deliveries.
Moreover, the overall demand is largely impacted by the continual decline in Chinese HRC (SS400) export offers which have fallen by $5/t w-o-w to $770-780/t FOB China this week. This also marks the seventh consecutive week of decline.
Outlook
It is likely that overseas demand in these markets will remain low in the near term owing to the continual downtrend in global HRC offers. This may also have an impact on the mills’ price policy announcement for Dec’21 sales- that is due in a couple of days, and keep domestic prices under pressure. Last week, SteelMints benchmark HRC (IS 2062, 2.5-8mm) prices were assessed at INR 68,500-69,500/tonne (t), (down INR 2,200/t w-o-w) while those of CRCs (IS 513 Gr O, 0.9mm) were at INR 74,000-75,000/t (down, INR 1,300/t w-o-w). Prices mentioned above are on an exy-Mumbai basis, and exclusive of GST @ 18%.
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