Indian HRC exporters keep boosting sales globally, but fail to succeed in hiking deal prices

Tuesday, 16 January 2024 16:46:45 (GMT+3)   |   Istanbul
       

Although large mills attempted to push up ex-India hot rolled coil (HRC) prices in reaction to reports of price increases in Europe, most fresh bookings for ex-India HRC have been reported in the main trade destinations, including the Middle East, Europe, Vietnam and Turkey, at more or less the same levels as last week, and, according to several sources, even with some discounts.

More specifically, ex-India HRC offers price have been submitted in the range of $605-675/mt FOB, the same as last week. However, according to sources, deal prices have been estimated at lower levels, or at least $10-20/mt lower as compared to offers, as more Indian sellers have agreed to provide discounts in new deals. In particular, more deals for ex-India HRC have been reported in Europe during the past week and this week. According to sources, around 100,000 mt in total have been sold to southern European customers at $690-700/mt CFR for delivery in late February-early March. Besides, a western India-based exclusive flat steel producing mill reported a trade for 15,000 mt for delivery to Antwerp at $700/mt CFR, largely stable compared to deals in earlier week, the sources said.“Deal prices in northern Europe have been estimated at $700/mt CFR, while in the south at $695/mt CFR and below. Besides, the orders booked by Europe are likely to be produced during the first week of February, which means the material will arrive quite fast to its buyers,” an Indian trader told SteelOrbis, adding, “As for the security risks and freight rates related to the Red Sea crisis, we believe things are coming under control since the US and the UK have intervened, but still some people are taking advantage of this situation.”

Besides, following several deals for ex-India SAE1006 HRC at $635-640/mt CFR in the Middle East last week, more bookings have been reported this week at around $625-635/mt CFR. “Mills’ target prices are still estimated at around $635-640 CFR level,” a market insider told SteelOrbis.  

In the meantime, market insiders have reported about 50,000 mt of ex-India SAE1006 HRC sold in Vietnam at $615-620/mt CFR last week, while most offers have been voiced at $625-635/mt CFR level in Vietnam.

Furthermore, offers for ex-India HRC in Turkey have been reported at $650/mt CFR and above, the same as last week. However, according to sources, several deals were done at around $635/mt CFR during the last few weeks.

“Based purely on the fundamentals of the market, the export outlook is improving. Domestic prices are increasing in the EU and current ex-India offers are competitive. But the positive of fundamentals can still be affected if buyers are unwilling to bear the high costs of freight, insurance and the war risks being sought by shippers,” a source at Tata Steel Limited said.


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