JSW Steel Raises HRC Export Offers by USD 10-15/MT - Sources

In a surprise move JSW Steel, India's largest and private steel producer has raised its HRC export offers by USD 10-15/MT for June shipments. According to market participants offers have increased in line with rising Chinese offers and improved demand from South East Asian buyers.

According to sources, current offers for base grade HRC for South East Asian nations which were are at around USD 460/MT, FoB India last week have now moved up to USD 470/MT, FoB India which is equivalent to USD 480-485/MT CFR South East Asia. Last week offers were at USD 470-475/MT CFR South East Asia. However no deals have been heard settled at these prices.

No firm offers were reported from other Indian manufacturers, but it is expected that Indian steel makers will test the market with higher offers.

Factors Supporting Price hike in Export market are:

1. Rising Chinese HRC export offers: Chinese HRC export offers have increased by USD 15-20 /MT in last few weeks following gains in domestic market. Current offers for SS400 grade HRC from China are at USD 440-450/MT FoB China.

2. Buying interest from South East Asian buyers: It is reported that buyers have returned to market after a long halt. They have no other option but to accept higher Chinese offers.Despite hike in Chinese HRC export offers, Vietnam based buyers made bookings for Jul'17 shipments as they were in need to restock their inventories.

3. Higher Japanese & Korean Offers: Japanese and Korean offers remain strong due to improved domestic demand. HRC export offers from these countries are assessed at USD 470-480/MT,FoB Japan and USD 460-470/MT, FoB South Korea.