Posted on 20 Jan 2022
at $735-740/tonne fob India, various sources inform Kallanish.
"Due to the reduced production guidance from various coking coal miners, coking coal prices are up again and are expected to rise further, owing to which steel players have increased their prices and expect to increase further in the coming days,” informs a senior Indian steel plant executive.
In line with exports, the domestic market also expects a price correction in the coming days. Offers for 2.5mm+ E250 grade domestic HRC are noted at INR 64,000/t ($860) ex-Mumbai for January deliveries. Offers for E350 grade HRC are pegged at INR 66,500-67,000/t ex-Mumbai.
“The domestic market is also expecting a price correction. In the coming days, we might expect a hike of INR 500-1,000/t across all grades,” says a domestic HRC trader.
Mills have withdrawn their offers from the Vietnamese market and expect to come back with higher numbers. Last week, a few deals were heard at $745-750/t cfr Ho Chi Minh City (HCMC). This week, mills are not indicating any offers to Vietnam, as they are already booked till February/early March.
“Mills’ export appetite is satisfied now and they are aiming for higher offers,” informs a Vietnam-based trader. “A majority of them have withdrawn their offers from Vietnam and expect to raise the offers on a cost push from soaring coking coal prices. As per their [mills’] indication to the other markets, we feel that offers to Vietnam will surge by at least $20-25/t in the coming days.”
Indian-origin 2mm+ SAE 1006 grade February-delivery HRC offers to United Arab Emirates and neighbouring countries have surged to $790-800/t cfr Jebel Ali, while offers to Egypt are noted at $810-820/t cfr Egypt. However, mills are now targeting $830-840/t cfr Egypt, one confirms. A major Indian mill is reported to have sold 13,000-15,000 tonnes of SAE 1006 grade HRC at $810/t cfr Egypt on Tuesday.
“Indian mills are booked now till end-March. With positive news from China, mills will be even reluctant to go below $800/t cfr UAE now,” informs a senior Indian steel company source.
Offers to Europe are noted firm at $880/t cfr Antwerp. A few quotes were heard from Indian mills but no deal was confirmed. Indian mills are targeting $790-800/t fob India for European deliveries. Offers to Turkey have surged to $790-800/t cfr Turkey.
Source:Kallanish
