Indian Steelmakers Resume Export Bookings at Lower Prices
...
Indian steel makers have resumed export bookings at a price lower than the last month in order to offset subdued domestic demand and to match Chinese and Russian offers.
Indian exporters were not active in the month of October due to high volatility and unclear direction from Chinese market.
According to Indian ministry of steel, exports in September recorded at 1.12 MnT , which is higher by 21% as compared to last month and 71% as compared to last year during the same period.
Indian exports may be recorded low in October due to local holidays, which kept trade activities limited. But it should be high during November, according to SteelMint Research.
HRC (SAE 1006) cargoes have been booked at around USD 555-560/MT FOB India, against a previous levels of USD 570/MT. Where as billet exports are concluded at USD 470-475/MT FOB India for 150mm and 4SP grade, which was hovering at USD 500-505/MT FOB last month.
Chinese HRC offers have dropped to USD 560/MT and Billet offers to USD 510-515/t FOB China main port, where as Russian HRC offers have dropped to USD 540-565/t and billet to USD 485-490/t FOB Black sea in last few weeks.
"JSW Steel has booked decent quantities of HRC and billets for November delivery, similarly Vizag steel has booked 45,000 mt billets for November delivery. Other manufacturers have either booked or in the process of booking export orders." said a exporter based in India.
Current offers for Re-bar are assessed at INR 32,500-33,000/t (USD 500-508), Wire rod at INR 34,500-35,500/t (USD 532-546), HRC at INR 38,750/MT, (USD 597) and MS Plates at INR 37,500/MT (USD 577) Ex Mumbai , excluding 18% GST in Indian domestic market.
Steel manufacturers may offer some discount in domestic market in order to bring some buying interest. But over all steel demand tends to remain low post de-demonetization and GST
Chinese steel exports are falling consistently since last thirteen months and likely to fall more amid production cuts. This gives an opportunity to Indian manufacturers.
Trade Wise
1. Indian state owned mill, Vizag steel concludes 30,000 MT of 150mm Billet (4SP) at USD 470-475/t FOB India East Coast; Cargo has likely been booked for Sri Lanka.
2. Vizag steel concludes 15,000 MT of 90mm Billet (4SP) at USD 490-495/t FOB India East Coast
3. A private mill has booked about 20,000 MT 125mm Billet (5SP) at around USD 475-480/t FOB India
4. Indian state owned mill, SAIL is offering 125mm billet (3/5 SP) from Haldia port
5. Total 40,000 MT HRC (SAE 1006) heard to have booked for Vietnam at around USD 570-575/t CFR Vietnam
6. Indian pig iron exporters eyeing levels above USD 340/t FOB, although buying interest largely seen at USD 320-330/t FOB
