- SteelMint’s India HRC export index drops to $645/t FOB
- Index drops close to levels last seen in early December 2020
- Buying interest remains subdued in overseas markets
The Indian HRC export index fell further by $15/t on the overseas trade platform this week. Low buying interest from Vietnam and the UAE continued to weigh on the offers from Indian steel mills.
SteelMint’s India HRC export index was recorded at $645/t FOB east coast, as against $660/t FOB assessed a week ago, a fall of $15/t w-o-w. The index is hovering close to a one-and-a-half-year low, as per data maintained with SteelMint.
Rationale: Nineteen indicative prices were considered as T2 inputs, while there was no export deal reported to Vietnam or the UAE to be considered as T1. The final price was an average of T1 and T2 inputs which stood at $645/t FOB. The CFR prices were converted to FOB equivalent by deducting freight costs from the buyer/seller.
Market-wise highlights
1. Indicative offers to Middle East range-bound: Offers from Indian mills to the Middle East continued to hover at around $705-710/t CFR, unchanged against last week. Buying interest remains low among re-rollers in UAE amid decent inventories, while drop in Chinese futures has dampened demand for imported HRCs, SteelMint learnt from reliable sources. Sporadic bids at around $700/t CFR were heard from UAE-based buyers.
2. Limited buying interest in Vietnam: Buyers in Vietnam continue to stick to domestic procurements. Moreover, buyers are postponing imports until the domestic supplies dry out. Highly competitive prices from Russia are weighing on the offers from India and other exporting nations.
- India HRC (SAE1006, boron-added): $670/t CFR. Last week’s indicative offers were at $690-710/t CFR. Towards the closing of last week, a private Indian steel major is heard to have booked 30,000 t of HRC (SAE1006, boron added) for export to Vietnam. The deal was concluded early this week at $670/t CFR basis, sources informed SteelMint.
- China HRC (SAE1006): $680/t CFR. Last week’s indications were around $680-690/t CFR.
- Russian mills’ offers were heard steeply low at $610/t CFR compared with those from the Indian and Chinese counterparts. Down from the previously heard level of $640/t CFR.
3. European demand remains subdued: The demand in the European Union has remained slow majorly due to high power costs impacting the activities of downstream industrial buyers. Indian HRC export indications were heard at around $700-750/t CFR, unchanged against the previous week level.
Outlook:
HRC export prices have continued to decline on the global platform this week, further raising concerns amongst buyers. Also, the most active Chinese SHFE HRC October contract settled today at RMB 4,209/t ($627/t), dropping by around RMB 144/t ($21/t) w-o-w.
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