JSW Steel Likely To Increase Allocation for HRC Exports - Sources

SteelMint learned from market sources that JSW Steel is to offer HRC for exports from next week. The company is expected to increase its allocation in exports against previous months.

"The company is likely to allocate nearly 100,000 MT HRC for export, which was less by around 40-50% in last couple of months ", shared a trader.

JSW Steel's flat steel output remained unchanged in FY18 and stood 11.44 MnT. In FY17 the same stood at 11.41 MnT.

Indian mills actively book orders for HRC exports, here is why ?

1.Optimistic Demand from South East Asian Nations and Middle East- Positive demand from Vietnam,Malaysia and Middle East has propelled the Indian mills to make allocations for HRC exports.Meanwhile owing to competitive pricing,Vietnam buyers are preferring Indian HRC over Chinese HRC export offers. Indian mills have booked bulk orders for export to Vietnam this month.

2.Dull buying in domestic market-Sluggish demand amid dull trades has lead to bearish sentiments in domestic market.Thus domestic flat steel prices continued to remain soft over dull buying. Prices in domestic traders market have weakened by INR 500/MT in last one month.

3.Rupee Hit all time low against USD-The Indian Rupee was one of the resilient currencies in the world till the beginning of 2018. Since 2018, it has tumbled about 8% in value against the US dollar.The Rupee yesterday hit an all time low to 69 per US dollar.However rupee has inched up today and stood at 68.47.Thus Indian steel exporters have started focusing on exports as it will benefit them on Rupee depreciation.

4.Investigation of safeguard duties in European Nations-The European Union(EU) has initiated a safeguard investigation into certain steel products in order to assess the effect of increased imports to Europe. Thus Indian mills have shifted there interest to SE Asian nations and Middle East countries as export destinations.