Data: SHFE, DCE market movement (Sep 15)

[India Domestic] India's domestic steel market extended its upward momentum on Tuesday against Sept 14 with prices all moving higher on strong buying interest. Billet-makers remain positive on near-term demand and are passing on higher sponge iron costs with rolling mills showing limited resistance to the price increases so far. Mandi billet up by 10.42USD/tonne (1,000INR/tonne) to 499.42USD/tonne (47,900INR/tonne) delivered Mandi. PDRI sponge iron up by 3.12USD/tonne (300INR/tonne) to 310.70USD/tonne (29,800INR/tonne) EXW Raipur. Mandi HMS 1&2 (80:20) rose by 10.42USD/tonne (1,000INR/tonne) to 409.74USD/tonne (39,300INR/tonne) delivered Mandi. Chennai HMS 1&2 (80:20) up by 8.33USD/tonne (800INR/tonne) to 362.74USD/tonne (34,800INR/tonne) delivered Chennai. Market activity has picked up with buyers bidding around 359.63-360.67USD/tonne (34,500–34,600INR/tonne), while offers are heard at around 364.84-365.86USD/tonne (35,000–35,100INR/tonne). Market participants noted the market as active with firm buying interest and limited willingness among sellers to reduce offers. Rebar increased by 11.46USD/tonne (1,100INR/tonne) to 529.63USD/tonne (50,800INR/tonne) EXW Raipur.

[India Export] Indian HRC sellers showed limited incentive to pursue low-priced sales to Southeast Asia on September 15. Indian HRC offers to Vietnam were heard at 550USD/tonne CFR, while Vietnamese domestic HRC offers stood at around 540–545USD/tonne CIF, depending on tonnage, limiting buyer interest in Indian seaborne material. Meanwhile, India’s firm and rising domestic market left sellers with little incentive to reduce their export offers unless they needed to move tonnage. European buyers also showed limited interest in Indian offers while awaiting clarity on quota availability, with material from other origins remaining more competitive. European domestic HRC prices were heard above approximately 849USD/tonne (735EUR/tonne) EXW. No fresh Indian export transaction was confirmed. In India, HRC prices were heard at approximately 626–631USD/tonne (60,000–60,500INR/tonne) EXW, while EX-yard prices reached approximately 667USD/tonne (64,000INR/tonne). Market participants reported that domestic prices continued to rise.

[Indonesia] Yesterday, prices rose by about 5 USD/metric ton but have now fallen again by 5 USD/metric ton to 480 USD/metric ton. This is due to falling Chinese steel prices—one of the main drivers of Indonesian steel prices. To ensure that Indonesian billet offers remain competitive, producers are willing to lower their prices in line with movements in Chinese steel product prices. This also means that market trends have become clear again after mills raised their prices—a move that turned out to be a mistake; at least now it’s clear which direction the market is heading. If Chinese steel prices continue to fall this week, Indonesian billet prices may drop even further; however, for export prices, we may see the impact on freight costs as global oil and gas prices are currently surging.