Dear Customers,
To improve transparency in India’s HRC export market, Shanghai Metals Market (SMM) proposes replacing its single HRC FOB India assessment with three regional price assessments.
Export prices and FOB netbacks can vary by destination because of freight, market conditions and trade regulations. FY2025–26 Indian non-alloy HRC export data confirm established flows to Vietnam, the UAE, Italy, Belgium and France.
Rationale
The current single FOB India assessment combines export indications linked to markets with different demand conditions, freight economics, regulatory exposure and achievable FOB netbacks. This can obscure regional price differences and cause the assessment to shift depending on which destination is active.
FY2025–26 export data also show distinct and established Indian HRC trade flows to Vietnam in Southeast Asia, the UAE in the Middle East, and Italy, Belgium and France in Europe. Separate regional assessments will therefore provide a clearer representation of each export market while retaining a common FOB India basis.
Proposed Change
| Status | Price Assessment | Price Code | Reference Destinations |
| Current | HRC FOB India | SMM-GS-HR-011 | All export markets combined |
| Proposed | HRC FOB India – Southeast Asia | To be announced | Vietnam |
| Proposed | HRC FOB India – Middle East | To be announced | United Arab Emirates |
| Proposed | HRC FOB India – Europe | To be announced | Italy, Belgium and France |
All three proposed assessments will remain on an FOB India basis. The existing SMM-GS-HR-011 assessment will cease when the new assessments are launched. Its historical data will remain available and will not be revised retrospectively.
Common Assessment Parameters
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Delivery basis: FOB main Indian loading ports, Incoterms 2020
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Currency/unit: USD/tonne
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Minimum quantity: 500 tonnes
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Payment terms: L/C at sight, settled in US dollars. Other payment arrangements will be normalised to the base terms.
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Delivery period: Shipment on board within 4–6 weeks of the assessment date
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Publication: Weekly, every Wednesday at 12:00 India time
SMM will assess validated spot transactions, bids, offers and tradable indications for Indian-origin HRC destined for each reference region. Information will be normalised for differences in port, quantity, payment terms and shipment timing in accordance with the SMM pricing methodology.
Consultation and Implementation
SMM invites market participants to submit feedback on this proposal by October 7, 2026. Comments should be sent to service.en@smm.cn with the subject line “HRC FOB India Methodology Consultation.”
Subject to market feedback, the proposed methodology will take effect on October 16, 2026. SMM will publish its final decision following the consultation.
Any written feedback received in relation to this methodology consultation will be made available to users upon request, unless the respondent explicitly designates the feedback as confidential.
Shanghai Metals Market (SMM)
Steel Research Team
September 28, 2026