BigMint is a Market Intelligence and Price Reporting firm that caters to the data and analytics requirements of businesses in the commodities sector. It publishes real time prices and information, which is impartial, independent and reliable, sourced from all industry interfaces – sellers, buyers, agents and traders. This data is filtered and passed through very stringent, calculative assessments before final prices are derived, thereby giving our clients accurate pricing.

Go to List

BigMint: India HRC export index remains stable in absence of active trade

...

Finish Flat

BigMint Bureau

199 Reads

27 Mar 2024, 18:30 IST

BigMint: India HRC export index remains stable in absence of active trade

Chinese SHFE HRC futures down RMB 54 ($8) w-o-w

Buying inquiries low amid festive holidays

BigMint's India HRC (SAE 1006) export index (for the Middle East and Vietnam) remained stable at around $575/t FOB east coast India. The holy month of Ramadan in the Middle East (ME) and Easter holidays in Europe have kept market sentiments stable. Chinese prices are very competitive, with Shanghai Futures Exchange (SHFE) declining w-o-w Chinese HRC export prices have remained competitive over other regions.

Rationale: No confirmed deal (T1) was reported in this publishing window. Nine indicative prices were considered as T2 inputs out of eleven inputs received. The final price was an average of T1 and T2 inputs, which stood at $575/t FOB. CFR prices were converted to FOB by deducting freight costs from the buyer or seller.

Market updates

1. Vietnam imported HRC offers drop w-o-w: Imported HRC offers to Vietnam dropped by around $10/t w-o-w from China. Offers for Chinese HRC (SAE1006) were heard at $550-555/t CFR Vietnam against last week's $560-565/t CFR. Moreover, Indian HRC indicative offers also inched down by $5/t w-o-w to $590/t CFR against $595/t CFR HCMC. Prices dropped amid subdued demand in Vietnam. Moreover, competitive domestic prices in Vietnam are putting pressure on imported HRC prices.

2. Middle East market quiet amidst Ramadan: Chinese HRC export offers to the Middle East dropped by $20-25/t. Prices are now at around $550-560/t CFR, down from $570-575/t last week. China's SHFE HRC futures fell by RMB 54/t ($8/t) w-o-w to RMB 3,743/t ($518/t) on 27 March against RMB 3,797/t ($526/t) on 20 March. Furthermore, they fell by RMB 39/t ($5/t) d-o-d against RMB 3,782/t ($523/t) on 26 March. Moreover, Indian prices for the Middle East held steady at $610/t CFR this week. Despite the drop, no deals were reported as the market remained quiet due to the ongoing of holy month of Ramadan. According to a source, deals were not concluded due to lower prices offered by Chinese mills and Holi holidays in India.

3. Indian HRC export offers to EU range-bound: Indian HRC export prices for Europe (S275, 3mm) remained range-bound this week at around $640-650/t CFR Antwerp ($590-600/t FOB east coast India). Due to the Easter holidays, trading activity in the region has been subdued, and no deal was heard in the market. Many buyers are postponing purchases until after the break to gain better visibility on import volumes for the second quarter.

Outlook:

Market participants are in a wait-and-see mode amid ongoing festivities. Chinese futures have dropped w-o-w. A potential uptick in demand after Ramadan and Holi festivities in India may be expected, although the competitive pricing environment will continue to challenge Indian mills.