Indian hot rolled coil (HRC) exporters have remained under strong pressure from rising inventories and sluggish local sales. Trading has become elusive with only stray deals heard in the Gulf region, SteelOrbis has learned from trade and industry circles.
Ex-India HRC prices have settled at $910-1,050/mt FOB, with only the lower end of the range declining by $10/mt since late last week, and by $30/mt week on week. Though the higher end of the range (which is reflecting the prices asked by Indian sellers in the EU) has not changed, no deals have been reported to this destination and most European buyers are not ready to purchase at this level.
“Buying from the EU region is almost at a halt. Deep discounts sought by buyers in this market are not viable for Indian mills,” an official at a private Indian mill said.
“Some sellers are aggressive in pricing for the Gulf market. Exporters are banking on some demand rebound post-Eid early next month. But with depressed demand across the MENA region and the EU and no buying interest from other Asian regions, the upside potential of prices is very limited,” he said.
At least two sources in trade circles pointed out that a lot of ex-China offers are far below the $900/mt FOB mark in most regions, indicating a further downside potential for ex-India offers, although it is still not clear if Indian mills will resort to such aggressive pricing to push volumes overseas.
Trade circles said that an eastern Indian mill has reported a trade for June shipment with a UAE buyer at around $920-930/mt FOB. This is $10-20/mt below a previous contract.
A government-run mill is heard to have concluded a trade for a small volume to the Middle East at $910/mt FOB, the source said.
