Ex-India hot rolled coil (HRC) prices have mainly been kept by large mills this week following slack trade activity. However, some Indian sellers have become more positive this week, given the improved sentiments in China coupled with the expected revival of demand in destinations such as the Middle East and southern Europe.
More specifically, ex-India HRC prices have been estimated at $545-570/mt FOB, mainly the same as last week, with the lower end of the range corresponding to offers in Asia and some non-traditional markets, like Nepal and Bangladesh. At the same time, while most ex-India HRC offers have been maintained at around $635/mt CFR Spain, the same as last week, offers from a number of traders have increased slightly to $645/mt CFR level, including 90-day deferred payment. However, according to sources, several deals for around 20,000 mt in total of ex-India HRC directly from mills have been reported in Portugal at $610/mt CFR, which translates to around $560/mt FOB, though this information has not been officially confirmed by the time of publication.
Meanwhile, trade activity has remained muted in the Middle East, with indicative offers standing at around $555-560/mt FOB, while most Asian buyers have kept holding back deals. According to the sources, one of the Indian mills was heard to have submitted an offer for 15,000 mt t Vietnam at $548/mt FOB, but no confirmation was available regarding whether a deal was concluded against this offer.
“Overall trade activity has been slow. But we are expecting some revival as business is expected to resume in the Middle East after the holidays. We are also more optimistic about sales in southern Europe, which are very promising, where they are emerging destinations for ex-India HRC,” a source in ArcelorMittal Nippon Steel Limited told SteelOrbis.
“However, price competition will be a big challenge. Export volumes will increase, but prices not much,” he added.