Indian Bulk HRC Export Shipments Drop 13% in Feb'20 Over High Domestic Prices

Bulk HRC export shipments from India is estimated to be around 3,40,317 MT in Feb'20 down by 13% M-o-M, based on the data of 20 ports maintained by SteelMint. Exports were recorded at 3,92,798 MT in Jan '20.

Factors behind the decline in export volumes are as follows:

-- Shift in interest to domestic sales- Steel manufacturers raised HRC prices in the domestic market by INR 1000-1500/MT for Feb deliveries on higher production cost. Also, limited imports from FTA nations and restocking activities in the trade segment propelled mills to raise domestic prices. Thus mills were getting better realization in domestic markets than in exports, resulting in lower export bookings.

-- Indian HRC offer remained less competitive to Vietnam- HRC offers of Indian mills to Vietnam market were comparatively higher end as compared to offers Chinese mills. As per data maintained with SteelMint on a monthly average basis, Indian HRC export offers stood at USD 506/MT FoB India in Feb'20 against USD 520/MT FoB in Jan' 20. On the other hand, mills HRC price was assessed at INR 39,000/MT ex-Mumbai (USD 527) in Feb'20 against INR 37,300/MT (USD 504) in Jan'20.

Vietnam continues to remain the largest importer of Indian HRC - Vietnam continues to be the most preferred destination for HRC exports accounting for 27% of the share. In the month of Feb'20, bulk HRC export volumes to Vietnam stood at 91,000 MT, which was 89,000 MT in Jan' 20.

Other major destinations were- UAE with 67,000 MT in Feb'20 against 73,563 MT in the previous month. Italy booked around 13,000 MT HRC in Feb'20 against 44,600 MT in Jan'20. Also, exports to Malaysia stood at 31,000 MT in Feb'20 against 50,675 MT in the previous month.

Tata Steel remained the largest exporter in Feb'20- In Feb'20, TATA Steel's bulk HRC export shipments stood at 1,99,600 MT, followed by JSW Steel at 84,117 MT, and AM/NS at 20,530 MT.