SteelMint: Indian HRC export market awaits resumption post-holidays; index largely stable

• SteelMint's India HRC export index at $600/t FOB
  
  
• Overseas markets yet to resume activities after New Year holidays
  
  
• Mills delay quoting export offers
  
  
• Announcement of domestic sales prices expected soon
  
  

SteelMint's India HRC (SAE1006) export index stands largely unchanged at $600/t FoB east coast, as against $597/t a week back, as overseas markets have not resumed activities fully post the festive holidays. "Participants are slow in coming back to the market post-the Christmas and New Year holiday leading to inactivity this week," informed reliable sources.

Furthermore, Indian mills are likely to quote their export offers after having announced their domestic prices for January 2023 sales in the next couple of days, hinted market sources.

Rationale: Fifteen indicative prices were considered as T2 inputs while there were no trade deals to be considered as T1. The final price was an average of T1 and T2 inputs which stood at $600/t FOB. CFR prices were converted to FOB equivalent by deducting freight costs from the buyer/seller.

The Chinese steel market opened up today post-holidays, with export offers being largely range-bound.

Overseas markets of Vietnam, and the Middle East are yet to open up. Participants are gradually resuming operations and the market should be active in the upcoming week, informed local market sources. However, export offers were mostly the same as in the last week of December 2022. Chinese mills offered HRCs (SAE1006) at $615-620/t CFR Vietnam and $620-630/t CFR UAE, while last heard offers from India were at $620-630/t CFR Vietnam and $640-650/t CFR UAE.

Also, mills are likely to quote higher offers for the European market as mills there have increased their January sales prices ahead of the holidays. Last heard, offers from Indian mills were at around $670-680/t CFR EU towards end-December, 2022.

"Trade activities should pick up later this week," said a market source.