Indian hot rolled coil (HRC) exporters have dropped prices again this week achieving modest success in reviving buying in some markets like the Middle East while deals have remained elusive in Europe.
Sources said that ex-India HRC prices have been reported in the range of $590-650/mt FOB, with the midpoint at $620/mt FOB, down by $17.5/mt week on week and $7.5/mt lower compared to the offers at the end of last week. The lower end of the range is applicable for deal prices in the Middle East, down by $13-15/mt week on week, while the higher end corresponds to ex-India offers in Europe.
Buyers in the Middle East have been slightly more active than earlier this month, but the market has remained very price-sensitive in view of the plethora of offers available ex-China and ex-Vietnam of late. More specifically, according to the sources, an eastern region-based Indian mill is heard to have concluded a June delivery trade for 12,000 mt to the UAE at $597/mt FOB, which translates to around $630/mt CFR UAE, compared to deals at $605-610/mt FOB last week. Besides, a western India-based integrated mill reported another deal for the UAE at $630/mt CFR, and a trade for 15,000 mt for delivery to Oman at $592/mt FOB or around $635-640/mt CFR.
The latter seller was also heard to have concluded a trade for 8,000 mt for delivery to Nigeria at $600/mt FOB, but this deal has not been confirmed by the time of publication.
“There is some tentative revival in buying interest. But not in terms of prices as ex-China prices are being dropped too aggressively again. Demand in the EU remains on the positive side but, with no urgent demand among distributors, buyers are preferring to wait for further declines,” an official at a private mill said. In particular, ex-India HRC offers in southern Europe have been voiced at $700/mt CFR, versus $700-720/mt CFR at the beginning of last week.