The Indian hot rolled coil (HRC) export market has been hit by bearish conditions with both prices and buying sentiments taking a hit from increased ex-China competition and Indian sellers’ inability to risk committing deliveries in the wake of disruptions of logistical operations, SteelOrbis has learned from trade and industry circles.
Ex-IndiaSAE1006HRCprices have been reported at $990-1,040/mt FOB. The higher end of the range has remained stable since last week as a number of major mills have been offering at $1,030-1,040/mt FOB, unwilling to drop prices. The lower end of the range slipped by $20/mt over the past week and reflects mainly traders’ prices for position cargoes and the lower tradable level in Southeast Asia.
Buyers are also reducing exposure in imports, expecting the current fall in prices to gain momentum and have only been willing to consider offers below the $1,000/mt mark on CFR basis.
At the same time, Indian sellers have also become cautious as risks in selling June-July shipment products have increased in the wake of disruptions of port operations. Cyclone Tauktae which hit the west coast last week has impacted operations of ports like Nhava Sheva, Mundhra and Kandla.
Warnings have already been issued at ports on the east coast and vessels have been redirected as Cyclone Yaas is expected to hit the Odisha-Bengal coast this week and ports like Haldia, Paradip and Visakhapatnam are on high alert and are expected to face significant disruptions, prompting sellers to defer conclusion of new contracts, sources said.
According to sources, one contract for Indian coils has been rumoured to an Asian buyer at around $980-990/mt FOB. This price corresponds to about $1,020-1,030/mt CFR Vietnam. At the same time, offers from big mills fromIndiahave been heard to Vietnam at $1,070/mt CFR and slightly above.