Ex-India hot rolled coil (HRC) indicative offer prices have shown a slight decline this week even though most mills have continued not to submit offers as buyers in the Middle East and Asia have been finding alternative cheaper sources, while Europe has continued to remain in uncertainty amid antidumping investigations and low business activity after the summer holidays.
More specifically, ex-India HRC prices have been heard in the range of $550-565/mt FOB against $560-580/mt FOB last week. However, even though ex-India HRC prices have been reduced, this has still been insufficient to drive sales, mainly amid tough competition with Chinese suppliers and the cautious stance of buyers in Europe.
According to sources, ex-China HRC offers have remained more competitive than offers from Indian mills and buyers in Asia have not been responding to offers for several weeks now, prompting Indian sellers to vacate the market.
In the meantime, offers for ex-India HRC have been voiced in southern Europe at $600-620/mt CFR, which translates to around €540-560/mt CFR, being the most competitive among other foreign suppliers in the region. However, given the recent announcement of the antidumping investigation in Europe against ex-India HRC, interest in Indian coils has been minimal.
“In the absence of buying interest in most key destinations, Indian mills are finding it more prudent not to incur any marketing expenses for exports,” a source at a private mill said.
“I do not think any mill will make export allocations for the quarter starting in September. Local market dependency will rise for all producers,” another market insider said.
