- HRC export index unchanged at $583/t FOB
- Offers in key export markets remain range-bound
- Bid-offer disparity emerges in Vietnam
- European market to resume activities next week
- Limited activity in Nepal amid holidays
SteelMint’s India HRC (SAE1006, boron-added) export index remained unchanged this week at $583/t FOB east coast.
A private Indian steel major was heard to have withdrawn its offers from the market.
Rationale: Twelve indicative prices were considered as T2 inputs, while there was no export deal reported to Vietnam or the UAE to be considered as T1. The final price was an average of T1 and T2 inputs which stood at $583/t FOB. The CFR prices were converted to FOB equivalent by deducting freight costs from the buyer/seller.
Market-wise highlights-
1. Bid offer disparity emerges in Vietnam: Exports to Vietnam have remained slow this year amid low buying preference for imported HRCs. Bids received were in the range of $570-585/t CFR Vietnam from buyers. Meanwhile, increased competition in the market has also weighed on the offers from both India and China.
There were no firm offers from India. However, a few indications were heard at around $590-610/t CFR Vietnam, lower from the previous week’s $620-630/t CFR. Meanwhile, Chinese HRC (SAE1006) was heard at $610/t CFR compared with last week’s $625-630/t CFR.
There were lower quotes heard from Japan at $610/t CFR while that from Taiwan at $590/t CFR, both unchanged w-o-w. Even domestic mills Formosa reduced skinpassed HRC to $610/t CIF HCMC, while Hoa Phat is offering non-skinpassed HRC at $595/t CIF for October early-November sales.
2. UAE buyers move to sidelines this week: The UAE-based buyers were heard to have sidelined themselves this week after having booked some volumes in the past. Indian mills’ indication was heard at around $630-640/t CFR, mostly unchanged over the week. Meanwhile, Chinese offers to the UAE were heard at around $650-660/t CFR.
3. European market likely to turn active next week: Indian HRC indications for the European markets are still being heard at $690-700/t CFR. The inactivity in the European market amid holidays in August is likely to get over with participants returning in the upcoming week, informed reliable EXIM trade sources. Meanwhile, ArcelorMittal is heard targeting HRC prices at Euro 800/t for October while for November, these are at Euro 850/t CFR.
4. Holiday mood slows activity in Nepal: Most of the Nepal market participants started zooming out this week. Participants are also waiting for the Indian mills to announce their September prices next week. However, a private Indian steel major was heard quoting at INR 52,500/t ($660/t) CNF Raxaul border, while another was still sticking to the previous indication of INR 55,000/t ($691/t) CNF.
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