Indian Bulk HRC Export Shipments Inch Down in Dec'19

Indian HRC bulk export shipments in Dec'19 is estimated at around 4,90,791 MT slightly down by 8% on a monthly premise as compared to 5,32,250 MT in Nov'19 based on the data of 20 ports maintained by SteelMint. Indian mills had made aggressive bookings for HRC export in the last couple of months, which resulted in a decrease in Indian HRC bulk export volumes in Dec'19.

Vietnam continues to remain the most preferred destination for Indian HRC exports- Vietnam continues to be the most preferred destination for HRC exports accounting for 41% of the share and stood at 1,99,772 MT of the overall exports in Dec'19 as against 2,11,500 MT in Nov' 19.

Other major destinations were- UAE with 69,000 MT remains the second-largest importer followed by Italy at 34,564 MT, and Portugal at 28,500 MT. Meanwhile, Greece at 28,500 MT and China 27,000 MT also remain major importing nations in Dec'19.

Tata Steel remained the largest exporter in Dec'19- In Dec'19, TATA Steel's HRC export shipments stood at 2,59,676 MT, followed by JSW Steel at 1,35,915 MT, Essar Steel at 68,200 MT and SAIL at 27,000 MT.

Also as per data maintained with SteelMint on an average basis, Indian HRC export offers stood at USD 470/MT FoB India in Dec'19, up by almost USD 40/MT M-o-M basis against USD 430/MT FoB basis in Nov' 19.

Another reason was Vietnam based domestic integrated steel mill Formosa Ha Tinh offering HRC (skin pass SAE1006) at USD 465/MT CFR basis for Dec deliveries. Also, the mill was offering discounts in order to match Chinese and Indian offers.

However, currently, Indian steel mills have raised HRC export offers to USD 515-520/MT CFR Vietnam for Feb deliveries and China is offering at USD 510/MT CFR backed by increased trade inquiries from Vietnamese buyers.