- HRC export index unchanged at $583/t FOB
- Offers in key export markets remain rangebound
- Vietnamese buyers turn to domestic market
- Limited activity in Nepal and Europe amid holidays
SteelMint’s India HRC (SAE1006, boron-added) export index continued to hover around $583/t FOB east coast, unchanged for the second week in a row.
Decline in Chinese HRC offers weighed on sentiments of importing countries, pushing buyers to the sidelines. SteelMint assessed Chinese HRC (SS400) at $605/t FOB, down $15/t against the previous week.
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. Offers to UAE remain firm: Offers in the region continue to hover around $630-640/t CFR for Indian HRC. Meanwhile offers from China also dropped to $640-650/t CFR, while Japanese offers were heard at around $620-640/t CFR.
Moreover, an export deal for 20,000 t HRC was heard concluded at $640/t CFR for end-September delivery some 7-10 days ago, informed sources. As the deal does not fall in the assessment date range it was excluded from the index valuation.
However, a few Indian mills are trying to raise their offers but it seems unlikey that it would attract buyers amid declining prices from other exporting countries.
2. Vietnamese buyers turn to domestic purchases: Vietnamese buyers have started sourcing HRC domestically after mills reduced their prices for October and early-November sales. This has largely weighed on price indications from major exporting countries.
However, Indian HRC offers hover around $620-630/t CFR Vietnam, unchanged against last week. Some offers were floated in the market at around $640/t but were not entertained by domestic buyers, shared Vietnam-based sources.
Fresh indications for Chinese HRC (SAE1006) have dropped to $620/t CFR from the previous week’s $625-630/t CFR. Meanwhile, offers for some Japanese position cargoes were heard at $590/t CFR.
3. Limited activity in European market: Holidays have impacted European market activites. Export offers from India stand unchanged at $690-700/t CFR. Indian traders and mill sources are expecting market activities to pick up by the first week of September.
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