Although ex-India hot rolled coil (HRC) prices have been largely stable in the Middle East, with buyers almost completely absent, offer prices for European customers have declined slightly again. A few deals in the EU have offered a glimmer of hope in terms of demand, but overall price sentiment has remained weak as customers have continued to push for deeper discounts.
Sources said that ex-India HRC offers have remined stable at the lower range of $500-510/mt FOB and buyers from the Middle East have continued not to respond. Continuing geo-political tensions in the region and uncertain shipping and logistical timelines have kept a section of buyers out of the market. Also, aggressive ex-China offers, and some heard at levels of around $435-445/mt FOB, also offer a stiff challenge for ex-India offers to be considered in the region.
However, some successful deals in the EU have improved the mood, even though, while deal volumes were confirmed, there was wide speculation on deal prices as sellers did not disclose any price indications. Most market intermediaries averred that deals in Europe over the past week were on the higher side of official offers even though there was no consensus on how much higher, sources said.
The sources said that an eastern India-based mill reported a deal for 5,000 mt for delivery to Rotterdam and another mill contracted a sale for delivery to Italy for 12,000 mt. A section of the market claimed the deal price was in the range of $530-540/mt FOB, while others contested such claims, indicating the final deal price to be lower at $520-530/mt FOB levels.
Thus, ex-India SAE1006 HRC reference prices have moved to $500-540/mt FOB, down by $10/mt on the higher end of the range over the past week.
“Irrespective of speculation on deal prices in Europe, we do not give much weightage to these transactions, which are stray in any case. Prices are declining in the EU region, and buyers are deferring deals, anticipating further cuts by local mills. Distributors too are heard to be fully stocked. So, any optimism on Indian exports is premature and unrealistic in terms of sustenance,” an affiliate of Tata Steel Limited told SteelOrbis.