The continued decline in India's export prices in Southeast Asia has attracted the attention of market participants. Although inexpensive Indian hot-rolled coils have already put pressure on the Vietnamese market, export of long products from India is currently starting to affect the region.
Indian blast furnaces from two plants are currently priced at US $ 435 per tonne in Manila, sources in Manila import and trade say. “India seems really hungry,” said an importer from Manila. Current prices in India are much lower than offers at $ 456 per ton in Manila in the second half of July and $ 448 per ton in the first week of August.
Finished steel prices are low in India, so the Indian blast furnace could still fall to $ 430 per ton in Southeast Asia "... anytime," said the Indian trader. Although offers for Indian wire rod are not common, some sources of purchase in Manila report an offer at a price of $ 470 / ton, which, according to Indian traders, is possible.
“It's more than just a seasonal lull,” says another Indian trader. “Finished steel does not move, reinforcement is not for sale. Many infrastructure projects are suspended, ”he adds. The recession in the Indian economy has affected various sectors, including the automotive, as well as real estate and real estate.
The Indian economy has slowed in recent months, with gross domestic product growth falling from 6.6% to 5.8% in the quarter ending in March. Nomura predicts a further slowdown in India's economic growth in April-June to 5.7% amid declining consumption, weak investment and an inefficient service sector, according to Indian press reports. The Central Statistical Office of India will publish June GDP data for August 30th.
Meanwhile, Indian HRC export prices are still under pressure in Vietnam. HRC SAE 1006 grades 2 mm and above from a leading Indian plant offers $ 472 / ton CFR. “The supplier welcomes bids of $ 470 per tonne,” said a Vietnamese trader. A deal for 20,000 tons of Indian HRC of the same quality and thickness was struck last Wednesday at $ 475 / ton in Vietnam.
