- Indian mills remain less active in exports on higher domestic realizations
- Mills have raised domestic HRC prices by around INR 2,000/t this week
- Chinese mills resume HRC export offers, market awaits clarity
SteelMint’s Indian HRC (SAE 1006) export index increased by around $45/t on a weekly basis and stood at $785/t FoB basis against $740/t last week.
Mills are eyeing for export offers mainly to UAE at around $800-820/t CFR basis. However no major deals booked since Chinese mills are offering around $730-760/t CFR UAE. Mills are likely to resume their export offers to Europe after they resume trade after New Year holidays.
Few market sources shared with SteelMint that Indian mills are targeting HRC offers to Vietnam at around $760-770/t CFR basis, however they may not be able to conclude the deals owing to competitive offers from China.
Also, Indian mills have significantly raised HRC prices on robust domestic demand from auto and consumer durable sector. This prompted mills to quote export offers on higher side.
Rationale :Four indicative prices were considered as T2 inputs, with an average price of $785/t. The final price was an average of T2 inputs due to the absence of confirmed trades (T1). The CFR prices were converted to FoB equivalent by deducting freight costs from the buyer/seller.
Global HRC market overview:
1.Chinese HRC export offers remain stable; outlook improves
The Chinese mills have rolled-over their offers from the previous week at $690-700/t FoB China due to the partial resumption in overseas trades.
The export offers fell from the highs of $700-720/t FoB basis at Dec-end on decline in futures market and withdrawal of participants from market for extended holiday period.
Currently, the domestic market outlook has improved on restocking by traders after New year holidays. Also, appreciation of RMB against $ could keep the HRC prices and export offers supported in the near term.
2.CIS origin HRC export offers rise steeply w-o-w
The CIS origin HRC export offer making a jump of $35/t stood at $755-760/t FoB Black Sea. Last week offers were in range of $720-755/t FoB basis. Improved demand for HRC in major importing nations, especially Turkey, along with the slight improvement in global HRC offers seen at the commencement of New Year has led to the uptrend in prices.
3.Imported HRC offers to Vietnam remain unchanged
The offers from Chinese mills continued to hover at $710-730/t CFR Vietnam this week on limited trades due to pre-holiday stockings by Vietnamese buyers and delay in resumption of activities after holidays. Meanwhile, no offers were heard from other exporting nations.
4.Imported HRC offers to Pakistan
Chinese mills offer for HRC (SS400) are at $675/t CFR and SAE1006 at $685/t CFR basis. Steel producers from Japan and Taiwan have remained mute, while South Korean offers stand at $800/t CFR.
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