SteelMint: India HRC export index up marginally, trade yet to pick up

The Indian HRC export index increased this week by $2/tonne (t) as mills increased their offers for Vietnam. SteelMint's Indian HRC export index rose to $873/t FOB east coast compared to the previous week's offer of $871/t FOB. Trade activities are yet to pick up in the overseas markets, as per sources.

Indian mills opened with offers at around $910-920/t CFR Vietnam, while in the UAE, price indications continue to hover at around $910-920/t, CFR levels.

Rationale: Nine 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 $873/t FOB. The CFR prices were converted to FOB equivalent by deducting freight costs from the buyer/seller.

Global HRC market overview

1. China's Baosteel rolls over prices for Nov shipments: Chinese steel major Baosteel has kept its prices unchanged for hot-rolled coils, heavy plates, structural steel, pickled steel, cold-rolled coil, hot-dip galvanised coil, electro-galvanised sheet and silicon steel.

2. Chinese HRC market opens higher by $5/t: The Chinese mills' offers increased to around $975-995/t FOB basis from the pre-holiday levels of $970-990/t FOB. Importers are considering the Indian- and Russian-origin HRCs due to the price competitiveness.

3. CIS export offers remain flat w-o-w: Export offers from CIS nations continue to hover around $800-820/t FOB Black Sea, unchanged w-o-w.

4. Vietnam importers move to sidelines as Formosa rolls over prices: The Vietnamese importers turned observant after the domestic mill, Formosa Ha Tinh, announced a rollover in prices for Dec'21 shipments. However, the mill has discontinued offering the rebate of $5-10/t which was being provided for Nov'21 shipments.

Unlike the previous week, a few Indian steel mills were 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 resumed offering HRCs with quotes of around $870-880/t CFR basis.

5. Indian mills book 8-9 rakes of HRCs to Nepal: A couple of Indian steel producers have collectively booked around 8-9 rakes of HRCs for export to Nepal towards the end of the previous week. The deal was closed at $840/t ex-plant basis (translating to $860/t CFR Raxual border) for Dec'21 delivery, SteelMint learned from credible channel partners.
Currently, Indian mill offers are around $860-865/t CFR Raxual border.

6. Imported HRCs to Pakistan remain limited: The imported HRC market in Pakistan continues to lack firm offers from major exporting countries. However, offers at $970/t CFR Pakistan were heard from South Korea this week.
"Customers are expecting Japanese and Taiwanese mills to start offering soon," said a reliable Pakistan-based channel partner.