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SteelMint: Indian HRC export index increase sharply by $63/t

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BigMint Bureau

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6 Apr 2021, 20:39 IST

SteelMint: Indian HRC export index increase sharply by $63/t

SteelMint’s Indian HRC (SAE 1006) export index stands at $890/t FoB East-coast basis, up by $63 w-o-w against $827/t FoB.

Continued uncertainties on Chinese export rebate tax along with the increased preference of Vietnam re-rollers for Indian origin HRC lead to a steep hike in the nation’s HRC export offers. Higher price realizations in exports over domestic sales propelled Indian mills to raise export offers.

Few Indian mills have kept away from offering HRC for exports owing to awaited announcements on Chinese tax rebates and public holidays seen yesterday in China. Traders expect firm offers to be out towards the end of this week.

European HRC market has continued to remain elevated. Last week a major steel mill booked a small volume of around 6000 t HRC to Europe at a $1000/t CFR basis for May delivery. However, this deal is not considered for index calculation due to the methodology parameters.

Rationale: Five indicative prices were considered as T2 inputs, with an average price of $890/t.The final price was an average of T2 inputs. The CFR prices were converted to FoB equivalent by deducting freight costs from the buyer/seller.

Global HRC market highlights-

1.Chinese mills keep HRC export offer on hold amid export rebate cut announcement- The Chinese mills are now observing the market and rolling out limited offers as they await the official announcement on export rebate cut on 10 Apr ’21.The previous offers for HRC (SS400) were at around $820-840/t FoB China. Furthermore, a few tier-I mills are offering at around $850/t FoB basis.

2.Imported HRC offers to Vietnam �" Last week major Chinese steel mill was offering imported HRC to Vietnam at $860/t CFR.However, offers are expected to increase sharply as per changing international market situation. Meanwhile, Indian steel mills are offering on the higher side at around $920-925/t CFR basis.

3.Hoa Phat hits highest monthly steel sales in Mar ’21- The Hoa Phat Group has clocked the best monthly steel sales volume of 1 mn t in Mar ’21. Out of this, HRC sales stood at 238,000 t, surging by 36% m-o-m.

4.Imported HRC offers to Pakistan move up- The HRC export offers from Chinese mills were heard at around $850/t CFR Pakistan, SteelMint learned from Pakistan-based credible sources. However, no other countries were actively offering this week amid the export rebate cut announcement. The previous offers from Japanese and South Korean mills were at a $920/t CFR basis.