Indian HRC export market has gained slight momentum. Trade sources reported that Indian mills have resumed export offers for Vietnam which are reported around $540/t CFR levels. However, no deals have been reported so far as bids continue to remain lower than quoted offers.
This week SteelMint’s weekly HRC (SAE 1006) FoB India price index increased by $11.5 to $526.5/t FoB.
Rationale- No confirmed deals (T1) were recorded in this publishing window. Three indicative prices were considered as T2 inputs, with an average price of $526.5/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-
- Chinese HRC export offer continues to hover at $515-530/t FoB basis. Low HRC inventory in the market amid overhauling of three HRC lines earlier in the month and improved demand from importers kept the offer levels supported this week. Meanwhile strengthening of RMB against $ also kept the mills offering at higher levels.
- CIS origin HRC export offers have remained stable at $475-495/t FoB Black Sea after a decline of $5/t in the previous week. However, the demand from importing countries is good along with an improvement in the domestic demand.
- Imported HRC offers for Pakistan- Mills from Japan and Taiwan are offering HRC at $560/t CFR Karachi basis, whereas offers from Turkish mills are heard at $555/t CFR basis.
Other trade deals reported-
- An Indian HRC export deal for 10,000 t was concluded for EU region at $565-567/t CFR basis towards the end of the previous week.
- In the middle of the last week, a couple of major Indian steel producers had collectively concluded a deal involving two rakes of HRC (re-rolling and pipe grade) at $565-570/t CFR Raxual Border for Nov’20 shipment.
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