SteelMint: India HRC export index inches up as market awaits China's return

The Indian HRC export index rebounded this week by $6/tonne (t) after remaining under pressure for the past four weeks. SteelMint's Indian HRC export index rose to at $871/t FOB east coast compared to the previous week's offer of $865/t FOB.

This increase came on the back of increased restocking activities in the Indian domestic market that were seen towards the end of the previous week. However, most of the importers are awaiting resumption of the Chinese market which would offer a clearer direction on global HRC prices.

Vietnamese buyers continue to wait for the fresh round of offers, while in the UAE, price indications for Indian-origin HRC were at around $910-920/t, CFR levels.

Rationale: Six indicative prices were considered as T2 inputs while no major export deals were reported as T1. The final price was an average of T1 and T2 inputs which stood at $871/t FOB. The CFR prices were converted to FOB equivalent by deducting freight costs from the buyer/seller.

Global HRC market overview

1. Chinese market stays muted amid holiday: China is observing its national Golden Week holidays from 1-7 Oct. Last week's offers for HRCs (SS 400) stood at around $970-990/t FOB China.

2. CIS export offers drop further w-o-w: Export offers from CIS nations this week declined further by $30-35/t to $800-820/t FOB Black Sea compared to $830-855/t FOB a week ago. Market participants are expecting a further fall in export offers and, thus, delayed their purchases, which, in turn, resulted in bearish sentiments in the export market.

3. Buyers in Vietnam await announcement on fresh offers: The offer range increased from Indian steel mills this week for the Vietnamese market. An Indian steel mill was heard to have offered HRCs (SAE1006) at $920/t CFR, but traders indicated workable levels of around $890/t CFR levels.

Also, the Russian mills have withdrawn their offers this week. Meanwhile, market participants are anticipating an increase in imported HRC offers as the Chinese market resumes after the holidays.

4. Limited offers heard for imported HRCs to Pakistan: The imported HRC market in Pakistan is lacking firm offers from major exporting countries. However, offers at $880/t CFR Pakistan were heard from Brazil.

"There have been no offers from Japan, South Korea, Ukraine or Kazakhstan as of now. Expecting offers from these regions in the upcoming week," said a reliable Pakistan-based channel partner.