Indian HRC export trades have remained on the lower side due to limited allocations. Indian mills are eyeing HRC export offers mainly for Europe on higher price realizations. A major Indian steel mill was heard offering HRC at around $840-860/t CFR Europe. However, no major deals have been concluded yet. Market participants reported no firm Indian HRC price indications for Vietnam
Amid limited firm export allocations from mills and limited price indications, SteelMint has rolled over its Indian HRC (SAE 1006) export index to $785/t FoB basis.Also, Indian mills have significantly raised domestic prices on robust domestic demand from the auto and consumer durable sector, higher landed cost of imports. This has prompted mills to target higher offers for export.
Global HRC market overview
Chinese HRC export offer’s gap widen–
The current week’s spread of HRC export offers from Chinese mills enlarged to $650-710/t FoB China in contrast with $660-670/t FoB basis a week back.
Major Chinese mills are offering export offers up-to $710/t FoB basis on the back of depreciation of $ against RMB. However, there were no active transactions heard in the overseas market since buyers have attained a wait-and-watch approach. Also, after the decline in Chinese offers at the beginning of the month, traders are waiting for clear direction in prices.
Limited export allocations push Imported HRC offers to Vietnam upwards–
With the Chinese dominance in the Vietnamese HRC market offers went up to $730-740/t CFR basis contrasted against $710-730/t CFR basis a week ago. Other exporting nations viz. India, South Korea, Russia and Japan have been inactive in the market and are currently catering to their domestic markets.
Formosa announced a steep hike in HRC offers–
Domestic steelmaker Formosa announced a monthly hike in its HRC offers by $65/t for Mar ’21 deliveries. The company is offering HRC (SAE 1006, skin pass) at $725-730/t CIF basis while HRC (non-skin pass) at $720-725/t CIF basis.
Nepal books HRC from India-
A prominent private Indian steel manufacturer was heard to have concluded an HRC export deal to Nepal at a higher price range. The deal involved one jumbo rake of 3,600 t of HRC (re-rolling grade SAE 1006) and was concluded at $790-800/t ex-mill, translating to $810-820/t CFR Nepal basis for end Feb-Mar delivery.
CIS origin HRC export offers to continue to rally–
Continuing the uptrend for the tenth consecutive week, CIS origin HRC export offers stood at $785-790/t FoB Black Sea. The previous week’s offer was around $755-760/t FoB basis. Offers continued to ascend on the back of limited inventories, higher demand from major importing nations and strengthening global HRC prices.
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