Indian HRC export bookings regain momentum on EU comeback, index range bound

• Confirmed export deals of over 160,000 t Indian HRCs recorded in last 10 days
  
  
• Mills largely booked for Feb shipments
  
  
• Indian HRC export offers may uptick in the near term
  
  

The Indian exports market picked up momentum with bookings of around 160,000 tonnes (t) of hot-rolled coils (HRC) recorded in the past ten days for Europe, Vietnam, Turkey and Egypt.

SteelMint's India HRC (SAE1006) export index witnessed a marginal increase of $2/t to $722/tonne (t) FOB east coast.

Rationale: Twelve indicative prices were considered as T2 inputs. Meanwhile, three deals made to Vietnam were reported as T1. The final price was an average of T1 and T2 inputs which stood at $722/t FOB. The CFR prices were converted to FOB equivalent by deducting freight costs from the buyer/seller.

• EU buyers come back: European demand for HRCs seems to be gaining momentum with the long term contracts being finalised between steelmakers and end-consumers including the automobile industry. Furthermore, the auto industry participants are looking at better demand and easing of barriers such as chip shortages in the second half of CY'22.
  
  
• Vietnam turns active for imports on lower inventories: Although domestic mills in Vietnam have reduced their prices for Mar'22 shipments in their recent announcement, yet avenues for imports are there on production capacity constraints. This demand-supply gap is also a factor supporting higher export prices from Indian mills.
  
  

"Indian steel producers are well booked for Feb'22 deliveries and now eyeing for higher prices for the March shipments," SteelMint learned from reliable sources.

• HRC export offers to Nepal also increased by about $25/t w-o-w to $775-780/t CFR Raxaul border for end-Feb'22 or early-Mar'22 shipments.
  
  

Outlook: It seems that the Indian HRC export offers along with domestic prices might not witness further correction in the upcoming weeks backed by supply constraints on better export bookings.