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SteelMint: Indian HRC export index rises by $25 following the global trend

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BigMint Bureau

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17 Nov 2020, 18:50 IST

SteelMint: Indian HRC export index rises by $25 following the global trend

SteelMint's Indian HRC export index witnessed a significant increase this week by $25/t. Index for HRC (SAE 1006) FoB India stands at a $568/t FoB basis. Last week the index stood at $543/t FoB basis. Indian mills have raised export offers following a hike in offers from China & Japan. Trade sources mentioned an export deal to have concluded for UAE at $585/t CFR levels, however, it could not be confirmed till the time of publishing this report.

Six indicative prices were considered as T2 inputs, with an average price of $568/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-

Chinese mills further raise offers by $10 on boosted domestic market activities- Maintaining the uptrend, the Chinese HRC producers further increased export offers to $545-550/t FoB China backed by the higher domestic market realizations and robust demand. HRC Jan '21 futures contract in Shanghai Exchange followed the same trend and closed at RMB 4,053/t, up by RMB 120 w-o-w.
CIS origin export offers trended higher by $5 on the week- The lower inventory levels and improved overseas demand continued to push the mills to offer higher. The current week assessed offer stands at $520-530/t FoB Black Sea against the previous offer of $515-525/t FoB basis.
Imported-HRC offers to Pakistan rise by $10-15 from China- Chinese mills continued to increase their HRC export offers and currently priced HRC (SS400) at around $580-585/t CFR Pakistan. Meanwhile, Chinese HRC (SAE 1006) is being offered at $590/t CFR basis as against $580/t a week back.
Improved demand pushes Imported-HRC offers to Vietnam upwards- The improved demand in the country along with an increase in both global and domestic prices pushed for higher offers from exporting nations.
The leading Vietnamese steel producer- Formosa announced higher prices for Jan delivery at $560/t for HRC (skin-pass) and $555/t for HRC (non-skin pass).

Hao Phat- Vietnam's second-largest steel producer, announced its offer for HRC (skin pass) at $545/t CFR Haipong and $550/t CFR Ho Chi Minh port respectively for Jan deliveries.