Indian HRC export market continues to remain muted with majority of mills holding back offers. SteelMint’s weekly HRC (SAE 1006) FoB India price index witnessed a marginal decline by $3/t w-o-w and stood at $510/t. Last week the index price stood at $513/t FoB basis
Mills are in no hurry to offer material for exports on lucrative domestic realizations. In addition to it, they are waiting for Chinese market to resume activities after the weeklong holidays on the occasion of the National day festival.
“Indian mills are testing the HRC offers for UAE market with price levels of around $525-530/t CFR basis but no major deals have been reported yet at these levels”, SteelMint learned from its trade channels.
There was an unconfirmed trade heard that an Indian mill booked 10,000 t HRC to UAE at $533/t CFR UAE for Nov shipments last Friday. but its confirmation was not received till the time of publishing this report hence we have not considered the deal in our index calculation for this week.
Rationale – No confirmed deals (T1) were recorded in this publishing window. Four indicative prices were considered as T2 inputs, with the average price of $510/t. The final price was an average of T2 inputs. The CFR prices were converted to FoB equivalent by deducting freight costs from the buyer/seller.
Global HRC market overview –
- With the Chinese market witnessing holidays until 8 Oct’20, the mills have not rolled out fresh offers. Last week Chinese HRC offers were seen at $500-505/t FoB China.
- Russian steel manufacturer MMK has reduced its offer for HRC by $5 w-o-w. Current offer for SAE1006 stands at $505/t CFR Vietnam as against the previous offer of $510/t CFR basis a week back.
- The Pakistani importers were not active in the imported HRC market as they are decently stocked until mid-Dec. The importers had stocked up material when the offers were at $565/t CFR Pakistan a couple of weeks back. However, current offers continue to hover at $555-560/t CFR Pakistan from Japan, South Korea, and Taiwan.
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