Limited trades, low bids weigh on India HRC export index

• SteelMint's India HRC export index drops $55/t w-o-w
  
  
• Low-priced HRC booked by UAE-based mill from Kazakhstan
  
  
• HRC export offers to European markets decline steeply by $95/t w-o-w
  
  

HRC export offers from the major Indian steel manufacturers came under pressure amid low-priced bookings reported to the UAE and Europe from other exporting countries. SteelMint's India HRC export index slipped $55/t w-o-w to $1,010/t FOB East coast.

Market-wise updates:

• UAE-based mill books HRC from Kazakhstan: A UAE based mill has booked 30,000 t HRC from ArcelorMittal (AM) Kazakhstan at around $960/t CFR towards the middle of last week. Thus, having access to low-priced HRC led to the decline in price expectations of buyers in the UAE. Current indications from the Indian mills are at around $1,050-1,100/t CFR UAE as against last week's offers of $1,100-1,110/t CFR.
  
  
• China's entry in Europe: Chinese mills entering the European market by booking slabs for exports at lower price levels has brought down the price expectation of buyers. Indian mills lowered HRC export offers for the EU amidst cheaper Chinese slab export deals getting concluded.
  
  

As a result, indications from the Indian mills decreased sharply to $1,250-1,300/t CFR in contrast with a deal closed at $1,365/t a week ago for June shipment.

• Indian mills hold back from offering to Vietnam and Nepal: Indian mills continue to hold back from offering HRC for exports to Vietnam and Nepal amidst limited buying interest. In the Vietnamese market buyers remain focused on domestic procurement for the past couple of months. Moreover, domestic producer Hoa Phat has been ramping up production to meet domestic requirements. For instance, Hoa Phat's HRC sales volumes in Mar'22 hit a record high at 296,000 t.
  
  

Also, buyers have adopted a wait-and-watch approach with the domestic producers about to announce their prices for June and early-July shipments.

Outlook: Most mills are comfortably booked till April, having had booked shipments to Europe as well as Turkey and Vietnam. March saw the most number of bookings and deliveries happening for Europe and at higher prices. However, mills will have to scout the export market actively in both April and May, as suppliers are worried that high prices might imapct buying interest in the April-June quarter.