SteelMint: Indian HRC export index falls marginally

• Indian mills continue to hold back export offers on high domestic realizations.
  
  
• Positioned cargo sales in Vietnam have pulled down prices by $20 w-o-w.
  
  

SteelMint's weekly HRC (SAE 1006) FoB India export index falls marginally and stood at $527/t FoB India. Last week's index stood at $528/t FoB basis. Indian mills are holding back offers on pending shipments of last bookings. Also, mills have limited inventories in hand due to lower export allocations and improved domestic demand.

No export trades were reported recently. A total of four indicative prices were considered as T2 inputs, with the average price of $527/t. The final price was an average of T2 inputs. The CFR prices were converted to FoB equivalent by deducting freight costs from the buyer/seller.

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

Market overview- Indian mills continue to remain bullish in the domestic market and are planning to further hike in the domestic prices.

"We haven't made any export bookings recently due to pending deliveries of last bookings" shared a participant of major steel mill.

On the other hand, Vietnam sources shared that, HRC positioned cargoes of Indian origin has been traded at around $515-520/t CFR Vietnam basis. However, the quantity couldn't be confirmed while publishing this report.

Global market snapshot -

• Chinese HRC export offers moved down by $5/t w-o-w with the falling futures and domestic demand over the past week. Also, market sentiments continue to remain weak ahead of the National day holidays starting from 1st Oct'20.
  
  
• CIS-origin HRC export offers remain unchanged at $505-515/t FoB Black Sea.
  
  
• Vietnam's integrated steelmaker, Formosa Ha Tinh, has increased supply of base grade HRC (SAE 1006) and reduced the output of pipe-making grade HRC amid increased demand from end-users. This, in turn, might lead to reduced dependence on imported HRC in the short term.
  
  
• Imported HRC offers to Pakistan heard at around $535-540/t CFR basis for position cargoes however, the buyers stayed on the side-lines and are hesitant to make new bookings.