BigMint is a Market Intelligence and Price Reporting firm that caters to the data and analytics requirements of businesses in the commodities sector. It publishes real time prices and information, which is impartial, independent and reliable, sourced from all industry interfaces – sellers, buyers, agents and traders. This data is filtered and passed through very stringent, calculative assessments before final prices are derived, thereby giving our clients accurate pricing.

Go to List

SteelMint: Indian HRC export index increases by $30/t on bullish global market trends

...

Finish Flat

BigMint Bureau

1877 Reads

23 Mar 2021, 19:22 IST

SteelMint: Indian HRC export index increases by $30/t on bullish global market trends

Indian HRC (SAE 1006) export index went up this week following an upward trend in the global market. SteelMint's HRC (SAE 1006) index stands at $785/t FoB East-coast basis against $755/t FoB basis last week.

Major Indian steelmakers had raised their HRC export offers yesterday to $800-805/t CFR Vietnam which was around $780-785/t CFR basis last week. However, today few sources indicated that mills have withdrawn offers on sharp price volatility, both in global & domestic market.

Higher HRC export offers on bullish market trends along with the increased preference of Vietnam re-rollers for Indian origin HRC over China lead to higher offers from India

In addition to this, mills are indicating HRC on the higher side to the European markets and indicative price levels are heard to be around $900/t CFR Antwerp, up by $20 w-o-w against $880/t CFR last week.

Rationale: Seven indicative prices were considered as T2 inputs, with an average price of $785/t. The final price was an average of T2 inputs due to the absence of confirmed trades (T1). The CFR prices were converted to FoB equivalent by deducting freight costs from the buyer/seller.

Global HRC market overview-

1. Chinese HRC export offers continue to remain high- The export offers for HRC (SS400) have moved up by $20-25/t w-o-w to $765-770/t FoB China against the previous week's range of $740-750/t FoB basis. Major steel mills are offering $780-790/t FoB basis. Recent announcement on production restrictions in Tangshan province to control air pollution along with surging marine-freight rates are other reasons behind higher export offers from China.

2. CIS origin HRC offers to continue to rally- This week offers for CIS origin HRC have witnessed a $25/t increase on the back of improved demand from major importing nations. The current week assessed offers for HRC (S235JR) stands in the range of $815-830/t FoB Black Sea compared against $790-820/t FoB basis in the previous week.

3. Imported HRC offers to Vietnam- Vietnam re-rollers are ready to procure HRC from India at higher prices due to the huge risk involved in booking HRC with Chinese mills. Last week, an Eastern India-based mill concluded a deal of around 20,000 t HRC at around $780/t CFR Vietnam, sources highlighted. However, now the Indian mill is eyeing higher HRC export offers at $800/t CFR.

Chinese tier-1 mills have also raised HRC export offers to Vietnam at $780/t CFR which was around $760-770/t CFR basis last week. Meanwhile, Japanese and South Korean steel mills continue to offer at a premium and are offering at around $810/t CFR and $820/t CFR basis, respectively.

4. Vietnam's Hoa Phat sharply raises HRC offers by $75/t- Hao Phat has announced a steep hike in its monthly HRC offers by $75/t today. After revision, the HRC offer stands at $760-765/t CIF Vietnam for May-early Jun shipments. Last month, domestic HRC prices stood in the range of $685-690/t CIF Vietnam for Apr '21 shipments.

5. Imported HRC offers to Pakistan spike sharply-Imported HRC offers to Pakistan have increased significantly by $50/t from South Korea and Japan this week. The offers from these countries now stand at around $880/t CFR basis which was around $830/t CFR basis a week back.