SteelMint HRC export index remains stable in recent deal

SteelMint's weekly HRC (SAE 1006) FoB India price index remained stable at $502/t FoB India.

The index has been calculated using an average of T1 and T2 price inputs. Deals confirmed by either a buyer/seller are designated as T1 input while bids, offers and indicative prices are designated as T2 inputs.

For this week's assessment, one confirmed deal was considered as T1 inputs.

Details of this deal is mentioned below:

An Indian mill has concluded a deal for 10,000-20,000 t HRC (SAE 1006) to Vietnam at $515/t CFR for end Sep shipments.

The CFR prices were converted to FoB equivalent by deducting freight cost from the buyer/seller. The average T1 price was calculated as $500/t.

A total of eight offers and indicative prices were considered as T2 inputs, with the average price of $502/t. The final price was an average of average T1 and T2 inputs.

What is SteelMint HRC FoB Index- SteelMint publishes prices of HRC cargoes exported from major Indian ports on FoB basis. Major Indian producers of HRC are JSW Steel, Tata Steel and AM/NS India, with cargoes being shipped from the east and west coasts.

Methodology- Market data, including deals, bids and offers that meet the delivery and quality criteria are considered for price assessments. HRC cargoes have to adhere to specific quality requirements to be considered for price calculation.

The highest importance in the price calculation process is assigned to confirmed deals where either a buyer or seller has provided details of the transaction. A buyer or seller can be a producer of steel or a trading firm.

Deals of only reputed and trustworthy producers and trading firms are included in the price collection and calculation process. Confirmed bids and offers are also considered valuable for the pricing process

Global HRC market overview

Chinese HRC export offers continue to gain momentum- Chinese steel manufacturers continue to raise export offers at $5/t to $510-520/t FoB China. However last week the offers were in the range of $505-515/t CFR basis. The steel manufacturers seemed less interested in the overseas trades as they continue to focus on the decent demand and higher profit margins in the domestic market.

Meanwhile, domestic HRC prices were around RMB 4,040-4,060/t (Eastern China), down by RMB 30-40/t against RMB 4,080-4,090/t in the preceding week. Prices are inclusive of 13% VAT.

CIS countries keep HRC export offers firm- CIS countries have kept their offers unchanged over the week at $475-480/t FoB Black Sea. The offers rose in the previous week over improved demand from importers.

Indian HRC export offers to UAE- Indian steel mills are offering HRC at around $525-525/t CFR UAE for Sep end- Oct shipments. However, no major bookings reported yet, SteelMint learned from its trade sources.

Also, market participants in UAE shared that, "market is quiet, no deals are happening at higher offers."

Indicative HRC offers to Pakistan up by $10/t- As per the trade channels, the indicative offers stand at around $ 545/t CFR Pakistan, which was $ 535/t CFR basis a week earlier. The market participants expect clarity on offers in the next few days.