Posted on 08 Sep 2022
Export duties are troubling Indian steelmakers, especially now when prices in Europe are surging on the back of costlier energy and South Korea's steel production is impacted by the typhoon. Indian mills are seeing this as an “opportunity lost” for their sales as European buyers are rejecting the boron-added material exported by India to circumvent the duties.
This week, Indian hot rolled coil offers are seen seesawing on the back of Vietnamese, Turkish and Middle Eastern demand, varying from $580-600/tonne fob India depending on destination, Kallanish notes.
This week, initial quotes for 2mm+ SAE 1006 Indian HRC are heard at $630-640/t cfr Gulf Cooperation Council, equating to $590-600/t fob India. Sources, however, see deals more likely to be concluded at $620-625/t cfr GCC based on recent bookings from other origins. Contrary to GCC buyers’ expectations, Indian sources inform that mills are hesitant to go below $600/t fob India, especially for the GCC and Turkish markets.
“The GCC has become a buyer’s market now, with limited buyers and many sellers,” informs a source. “Demand for HRC is more or less fulfilled by back-to-back bookings from Japanese mills in the GCC. Buyers are now resisting to pay more despite a hike in coking coal prices.”
According to sources, a deal for 5,000 tonnes of Indian-origin structural grade HRC was concluded at $620-625/t cfr GCC on Monday.
Indian initial offers for SAE 1006 grade HRC to Vietnam are registered at $610/t cfr Ho Chi Minh City (HCMC); however, bids are noted at $580-585/t cfr. According to sources, a Chinese trader was heard negotiating with an Indian steel major for re-rollable grade HRC at $590/t cfr HCMC. The negotiation, however, has not translated into a deal.
Three sources report hearing a separate deal for 15,000t of Indian HRC concluding at $580/t cfr HCMC last week.
Following the price hike announcement by a European steel major, Indian sources have received firm enquires from Turkey. Indian offers for re-rollable grade HRC are heard at $600/t fob India, equating to $650/t cfr Turkey. Buyers’ expectations are heard at $600/t cfr Turkey, unacceptable for Indian suppliers.
“Indian offers to Turkey are still high for Turkish buyers,” says a source. “If they buy HRC at $650/t cfr, adding a $20/t expense for moving HRC from Turkish ports to mills and $60-70/t for conversion charge, and again $15-20/t expense on bringing CRC to the port … this will sum up to around $750-760/t fob for Turkish CRC. At this price, no European buyers will buy Turkish CRC.”
Offers to Europe are noted firm at $670-680/t cfr Italy for re-rollable grade and $700/t cfr Antwerp for structural grade, with no deals heard.
Meanwhile, Indian mills have revised domestic HRC prices to INR 55,500-56,000/t ($695.30), effective 1 September.
Source:Kallanish
