India: HRC trade prices range-bound; major mills to announce list prices for Jul'23 soon

Trade-level prices of hot-rolled coil (HRC) and cold-rolled coil (CRC) remained range-bound in key domestic markets, as per SteelMint assessment. Indian flat steel producers are likely to announce their list prices for July 2023 sales in a few days.

Buyers continue to avoid purchasing bulk volumes and are concluding only need-based deals. Meanwhile, HRC cargoes booked for imports at cheaper rates a month ago are arriving on Indian shores, sources informed.

SteelMint's benchmark bi-weekly assessment for HRC (IS2062, Gr E250, 2.5-8mm) stood at INR 54,500-55,500/t ($665-677/t) exy-Mumbai on 27 June. The average of the assessed price range was slightly lower by INR 200/t ($2/t) than the previous assessment on 23 June and also the week-ago period.

CRC (IS513 Gr O, 0.9mm) prices were assessed at around INR 58,500-59,500/t ($713-726/t) exy-Mumbai, down INR 400/t ($4/t) against levels witnessed last week. These prices exclude GST at 18%. (INR 1 = USD 0.0121952 ; USD 1 = INR 81.9997)

Market highlights

1. Indian HRC export offers edge up w-o-w: SteelMint's India HRC (SAE1006) export index was assessed at $570/t FOB east coast India against the previous week's $565/t FOB. This was followed by an export deal to the UAE for around $610/t CFR. However, no confirmation has been received from mill sources.

Overseas trade activities have remained slow amid Eid-ul-Adah, which is being observed from 28-30 June in the Middle East (ME). Meanwhile, the Chinese market too has been sluggish, as most participants are yet to return after the Dragon Boat festive holidays.

Moreover, sentiments in overseas markets are mixed amid volatility in Chinese steel futures. HRC futures (October contract) on the Shanghai Futures Exchange (SHFE) settled at RMB 3,821/t ($527/t) on 28 June, up by RMB 17/t ($2.4/t) d-o-d, and by RMB 14/t ($1.9/t) w-o-w. However, HRC (SAE1006) export offers from China to the UAE were heard at around $590/t CFR, unchanged w-o-w.

2. No recent HRC import bookings: Current offers for Chinese HRCs to India were heard at around $585-590/t CFR. The landed cost of imported material should come to around INR 53,400-53,800/t ($651-657/t) CFR at the port. However, amidst BIS certification issues, not many mills are aggressively offering in the Indian market. No fresh import bookings for August or early-September deliveries have been heard.

End-user industrial buyers continue to avoid purchasing bulk volumes. Cheaper imported HRC cargoes which were booked a month or so ago are arriving. Thus, there is still some pressure on domestic prices in the traders' market, sources informed. The landed cost of imports at ports is around INR 49,000-51,000/t, said a western India-based distributor source.

3. Mills to announce July sales prices soon: Domestic trade market participants are keenly awaiting the list price announcements by major Indian steel mills. The decline in trade market prices and similar negative trends in the global market over the past three-four weeks have kept sentiments mixed. Thus, buyers have sidelined themselves which has kept market activity at low levels. Mills are likely to announce their list prices coming Monday, SteelMint learnt from sources.