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SteelMint: Indian HRC export index range-bound as mills hold back offers

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BigMint Bureau

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15 Sep 2020, 19:31 IST

SteelMint: Indian HRC export index range-bound as mills hold back offers

SteelMint's weekly HRC (SAE 1006) FoB India price index remains range bound at $525-530/t FoB India. Indian mills are holding back offers on pending shipments of last bookings. Price clarity on export offers may be achieved towards next week, highlighted traders.

A total of five indicative prices were considered as T2 inputs, with the average price of $530/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.

"All mills are fully booked for Oct shipments and have plenty of time in hand for placing bookings for Nov shipments. Mills are not active in the export market at the moment, shared a trader.

Meanwhile improved buying activities in the domestic market and tight supply lead to a supply-demand mismatch. Thus, at the beginning of Sep mills raised HRC prices by INR 2000/t the back of supply concerns and hike in global steel prices.

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

Market overview

Chinese HRC export offers moved down by $5-10/t w-o-w amid downside in domestic prices. The overseas buyers had attained a wait and watch towards the end of the previous week anticipating a decline in export offers
CIS-origin HRC export offers gained further by $10-12/t this week on higher production costs and improving demand in major importing nations
Imported HRC offers to Pakistan heard at around $535-540/t CFR basis from China however, the buyers stayed on the sidelines and are hesitant to make new bookings
Vietnam's integrated steelmaker, Formosa Ha Tinh had announced a steep hike in its HRC monthly prices by around $45-50/t for Nov delivery last week. The company is offering HRC (skin pass) at $550/t CIF basis and non-skin pass at $545/t CIF basis.