Indian HRC (SAE 1006) export index increased this week following an uptrend in export offers from China and other major exporting nations. SteelMint’s index of HRC (SAE 1006) index stands at $740/t FoB East-coast basis against $717/t FoB basis last week.
Mills have recently concluded a few deals for Vietnam and are now eyeing higher HRC export offers for end Apr-May shipments. However, there are no active offers for the UAE market at present. Although mills are offering HRC on the higher side to the European region at around $860-865/t CFR Antwerp.
Deals concluded last week-
1. Eastern India based major steel mill booked around 30,000 t HRC to Vietnam at $738-740/t CFR basis for end Apr- May shipments.
2. Another deal of a Western India based player was heard to be under negotiations at a price level of around $745/t CFR Vietnam.
3. A major private steel mill has concluded an HRC deal of about 20,000 t at $735-740/t CFR basis for end Mar-Apr shipments.
Rationale: Seven indicative prices were considered as T2 inputs, with an average price of $740/t.The final price was an average of T2 inputs due to the absence of confirmed trades (T1). Deals concluded last week are not considered for calculation. The CFR prices were converted to FoB equivalent by deducting freight costs from the buyer/seller.
Global HRC market updates
a. Chinese mills continue to raise export offers- The current week assessed offers for HRC (SS400) stands around $710-720/t FoB China, up by $10-20/t from $690-710/t FoB basis a week back. No clear direction on the export rebate cuts alongside soaring freight costs has pushed mills to raise their offers.
b. Imported HRC offers to Vietnam continue to ascend- With the surge in global HRC prices, the imported HRC prices in Vietnam are also witnessing an increase from major suppliers. Chinese mills have been offering HRC (SAE1006) at $760/t CFR Vietnam while those from India are quoting $745-750/t CFR basis. Offers increased by 5-10/t against last deals.
Further, Vietnamese buyers are showing an increased preference for Indian origin HRC to avoid losses (mills and traders have to bear partial losses) if export rebate cuts are enforced by the government.
c. Formosa Ha Tinh to announce prices shortly- Vietnamese buyers are waiting for the HRC price policy announcement from the integrated steel manufacturer- Formosa for May delivery. Market participants, however, have indicated a price hike to the extent of $20-25/t.
d. Indian steel mill concludes HRC export deal for Nepal- An eastern India-based steel mill is reported to have booked around two rakes of HRC for exports to Nepal. The deal has been concluded at $700/t exw (equivalent to $710-725) CFR Raxual border.
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