SteelMint: Indian HRC export index stands unchanged w-o-w amid muted markets

• HRC export index unchanged w-o-w at $583/t FOB
  
  
• Indian mills refrain from reducing quotes
  
  
• Vietnamese buyers focusing on procuring domestically
  
  
• Bid-offer disparity in key importing nations
  
  

SteelMint's India HRC (SAE1006, boron-added) export index has remained stable at $583/t FOB east coast.

Indian mills are refraining from reducing their offers despite limited interest from importing countries at the current price indication. Mills are in no rush to book exports and are focusing on the domestic market which is fetching higher realisations while waiting for counter bids, informed sources.

Moreover, mills have started to increase their prices in the domestic market for end-September sales.

Rationale: Seventeen indicative prices were considered as T2 inputs, while there were no deals to be reported as T1 under the rationale. The final price was an average of T1 and T2 inputs which stood at $583/t FOB. The CFR prices were converted to FOB equivalent by deducting freight costs from the buyer/seller.

Market-wise highlights

1. Vietnamese mills announced prices, buyers return to domestic procurement: Vietnam-based major steel producers have announced their HRC prices for November and early-December sales. Formosa Ha Tinh had rolled over its prices for HRC (SAE1006, skinpassed) at $610/t CIF HCMC a week ago. Hoa Phat has announced an increase of VND 200,000/t pushing up the HRC (SAE1006, non-skinpassed) prices to VND 14,200,000/t ($599/t) CIF HCMC, yesterday.

"Buyers have refocused themselves to domestic supplies and will wait for these to dry up before switching back to imported ones," informed a reliable Vietnam-based source.

Most of the Indian mills stay withdrawn from the market. Some indications are still heard at around $630/t CFR levels, unchanged over the week.

Chinese HRCs (SAE1006) were heard at $605/t CFR, down from $610/t CFR a week ago. Offers for HRCs (SS400) were heard at around $570-580/t CFR levels, unchanged over the week.

2. Bid-offer disparity in UAE: Most of the buyers in the UAE market have moved to the sidelines amid lack of clarity about the price directions and bid-offer disparity. However, Indian steel majors continue indicating $630-640/t CFR levels for the UAE market, while the Chinese continue to offer at $620-630/t CFR. "There are no firm bids at present while a few buyers are testing the market at $605-615/t CFR levels," informed reliable UAE-based sources.

3. Absence of buying interest in European market: HRC export indications for the European market stand at around $690-700/t CFR Antwerp. Surging power costs and production cuts by end-user industries have weighed largely on the buying interest for imported HRCs, SteelMint learnt from reliable EXIM trade sources.

Outlook: Most of the mills have shifted their focus back to the domestic market and are awaiting counter-bids from overseas buyers. Meanwhile, mills are raising their list prices of flat steel products in the domestic market. Also, mills are refraining from reducing their quotes. Hence, Indian HRC export offers most likely will remain firm in the near term.