India: SteelMint HRC export index drops further on global cues

Decline in Chinese HRC export offers and recent sales of Russian HRC cargoes through traders have pulled down the global price sentiments. SteelMint’s Indian HRC (SAE 1006) export index stands at $920/tonne (t) FoB east-coast basis, down by $70/t against $990/t FoB week-on-week (w-o-w).

Disparity between bids and offers have kept trades absent this week in India's traditional export destinations like Vietnam & Middle East. However, there were some unconfirmed reports on mills offering to Turkey, but it could not be confirmed while reporting.

In another deal reported by traders for Russian cargo for 90,000 t of HRC (SS400, SAE1006) for Jul '21 shipments, sources informed SteelMint.

Deals concluded:

• HRC (SS400) is reported to have been booked at $850/t, CFR basis, for 40,000 t.
  
  
• HRC (SAE 1006) was booked at around $860/t, CFR. Quantity was 50,000 t.
  
  

Thus Vietnam buyers are attracted towards lower HRC offers from Russia due to higher offers from major exporting nations

Rationale
Seven indicative prices were considered as T2 inputs which stood at $920/t FoB. The CFR prices were converted to FoB equivalent by deducting freight costs from the buyer/seller.

Global HRC market overview

1.Chinese HRC offers inch down-The Chinese HRC export offers continued to hover at $940-945/t FoB China. The export offers are impacted by the below mentioned factors-

• Lacking clarity over export tax imposition.
  
  
• Dull buying interest in the domestic as well as overseas market.
  
  
• Celebration of the 100th anniversary of the Chinese communist party during 1-5 July has kept the demand low.
  
  

2.Imported HRC offers to Vietnam go down-A higher preference for the domestic produced HRC in Vietnam has weighed down on the offers from major exporting countries. However, a few deals concerning Russian HRC (position cargoes) were heard to have been concluded by traders at lower price ranges. Chinese mills rolled out new offers at $930/t CFR basis as against $990/t CFR a week ago. A few tier-I mills were also offering at $1,050/t CFR basis in the preceding week. Japan-based steel mills quoted offers at $1,050/t CFR basis, contrasted against offers of $1,150/t a week ago.