- HRC export index falls to $580/t FOB
- Indian mills focus on domestic sales
- Vietnamese buyers awaiting domestic price announcement
- Chinese offers drop post Golden Week holidays
SteelMint’s India HRC (SAE1006, boron-added) export index dropped marginally this week by $3/t to $580/t FOB east coast India.
A few quotes in the Middle East and Vietnamese markets were heard at reduced levels, while most of the mills clung to previous week’s offer levels. Buying interest in these markets are being heard at below $600/t CFR levels, informed sources.
Moreover, most of the mills are more inclined towards the domestic market amid higher realisations. Indian mills increased their HRC list prices for early-October sales by INR 1,000/t a week ago.
Rationale: Seventeen indicative prices were considered as T2 inputs, while there were no deals to be reported as T1 under the rationale. The final price was an average of T1 and T2 inputs which stood at $580/t FOB. The CFR prices were converted to FOB equivalent by deducting freight costs from the buyer/seller.
Market highlights
1. Vietnamese buyers await domestic price announcement: Vietnam’s imported HRC market turned silent this week with buyers waiting for December and early-January price announcements from domestic mills.
“Indian mills are not much inclined towards the overseas markets as we are enjoying higher realisations in the domestic market,” informed a few sources. However, a few offers were heard at reduced levels of $600/t CFR in contrast with $620-630/t CFR floated by most of the major mills.
Moreover, offers from Chinese mills also witnessed a drop of about $10/t w-o-w to $570-580/t CFR Vietnam. Japanese mills offered at around $560-570/t CFR Vietnam this week compared with $610/t CFR a week ago.
2. UAE buyers on sidelines: Buying interest in the UAE market is also lacklustre. Indian mills have not been able to rouse interest at notional offer levels of $620-640/t CFR. Also, Japanese mills have turned active in the market and are offering at competitive $600/t CFR. No firm bids were received from the market, SteelMint learnt from sources.
3. Limited buying interest in Europe: HRC export indications for the European market continue to hover around $670-690/t CFR Antwerp. Lower acceptance of boron-added HRC and surging power costs in the EU continue to pose challenges for Indian mills.
4. Nepal market silent amid holidays: Dussehra and Diwali holidays alongside monsoon rains have kept the Nepal market silent. Demand from most of the flat steel-consuming industries remains low. Also, buyers are facing issues with LC opening for previously concluded deals. Currently, offers from Indian mills are at INR 52,000-53,000/t ($631-643/t) CFR Raxaul border.
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