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SteelMint: Indian HRC export index remains range-bound in absence of firm offers

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BigMint Bureau

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20 Oct 2020, 19:36 IST

SteelMint: Indian HRC export index remains range-bound in absence of firm offers

Indian HRC export market continues to remain less active in absence of firm offers from steel mills. Major steel manufacturers are holding back offers as they have shifted their interest to domestic sales on improved demand.

This week SteelMint's weekly HRC (SAE 1006) FoB India price index remained range-bound at $515/t FoB basis.

The price indications for the Middle East market is around $525-530/t CFR basis and few indications for SE Asia is heard around $535/t CFR basis, trade sources reported to SteelMint.

"Indian mills may come up with fresh offers by Oct end Nov first week for Dec bookings", market sources shared with SteelMint

Rationale - No confirmed deals (T1) were recorded in this publishing window. Three indicative prices were considered as T2 inputs, with an average price of $515/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.

Global HRC market overview -

Chinese HRC export offers went up further by $5-10/t this week and stands around $520/t FoB China. However major mills are offering on the higher side. Last week the offers were in the range of $510-515/t FoB basis.
Imported HRC offers to Vietnam have increased by around $10/t w-o-w. Offers from major Chinese mills currently stand at $530-535/t, CFR compared to offers of $525/t CFR last week. Importers have increased preference for Chinese HRC on competitive offers and anticipation of a shortage of re-rolling grade HRC. Offers from Russia are reported at $520/t, CFR Vietnam.
Vietnam's domestic mill - Formosa Ha Tinh (FHS) has lowered its HRC list prices for Dec'20 deliveries. The company has slashed offers by $15/t and offered HRC (SAE 1006, skin pass) at $535-540/t CIF basis and (non-skin pass) offers at $530-535/t CIF basis for Dec shipments.
Bangladesh and Pakistan-based re-rollers reported having booked around 200,000 t HRC from Japan, Korea, and Taiwan in the last ten days at $555-560/t CFR basis for Nov Dec shipments.