- HRC export index unchanged at $708/t FOB for 4 weeks in a row;
- Mills yet to announce fresh offers for April shipments;
- European mills to raise domestic prices;
- India export prices to rise in upcoming deals
SteelMint’s India HRC (SAE1006) export index stood unchanged at $708/t FOB east coast India for the fourth consecutive week. Indian mills increased their domestic prices last week, and are likely to announce fresh offers for April shipments in the upcoming week, informed a reliable source. Overseas buyers are thus waiting on the sidelines, especially in the Middle East market, he added.
Rationale: No confirmed deals (T1) were reported in this publishing window. Ten indicative prices were considered as T2 inputs. The final price was an average of T1 and T2 inputs, which stood at $708/t FOB. CFR prices were converted to FOB by deducting freight costs from the buyer or seller.
Market-wise updates:
1. Middle East buyers await fresh offers from Indian mills: Indian steel mills announced an increase of INR 1,000-2,000/t m-o-m in domestic HRC and CRC list prices for March sales earlier last week.
Meanwhile, the mills will now start rolling out quotes for April shipments for overseas markets. Last heard quotes from Indian mills for hot rolled coils (SAE1006) were at around $740-750/t CFR UAE. Chinese HRC export offers are also hovering around the last week’s level of $710/t CFR.
2. Offers rise by $10/t w-o-w for Europe: Indian mills have started quoting higher in the European market this week. Current quotes for HRCs (S275) are hovering around $810-820/t CFR Antwerp in comparison with last week’s $800-810/t CFR. “The market is abuzz with anticipation that European mills will likely raise their domestic prices and this may influence their import prices,” hinted a reliable source.
3. Indian mills yet to offer in Vietnamese market: Indian mills are still holding back offers for the Vietnamese market. Higher realisations in the Middle East and the European markets are keeping the mills enticed. “Indian mills are likely to come up with fresh offers for the Vietnamese markets in the coming weeks amid indications of likely increases in their (Vietnam) domestic prices and that of the Chinese HRCs,” informed a reliable source. Chinese HRCs (SAE1006) were heard being offered at $700-705/t CFR Vietnam this week, up by $10/t as against $690-695/t CFR a week ago.
Meanwhile, buyers’ inclination is still towards domestic products. The Vietnamese steel major, Hoa Phat, posted an 18.16% m-o-m increase in its sales of construction steel, including hot rolled coils and billets. The producer has sold about 0.475 mnt of steel in February 2023, as against 0.402 mnt a month ago, as per a company press release.
4. Mills indicate higher prices in Nepal market: Following the increase in domestic prices, Indian mills have started indicating higher offers in the Nepalese market as well. For the current week, quotes are being heard at around $720-730/t CFR Raxual border, up from last week’s levels of $715-720/t CFR. However, no deals have been heard at these levels, informed market sources.
Outlook: Indian HRC export offers are most likely to continue rising in the European market amid improved restocking demand. Also, a few European mills are eyeing long-term contracts in spite of spot sales adding to supply woes. However, competition with China in the traditional markets of the Middle East and Vietnam may keep the offers range-bound in the near term, opined market sources.
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