Ex-India hot rolled coil (HRC) offers have shown a slight upward bias for the Middle East where no deals worked out in the face of aggressive ex-China offers. The move is also explained by very low interest in exports among Indian mills, who have been focusing on domestic sales expansion. Meanwhile, offers to Europe have remained relatively stable with only occasional deals reported during the past week.
Sources said that ex-India HRC indicative offers in the Middle East have settled at $520-530/mt FOB, compared to $500-520/mt FOB last week, but deals were not successful with ex-China materials being pushed aggressively in the region and deal prices heard to be working out in the range of $485-495/mt CFR.
Meanwhile, large Indian mills have kept their prices in Europe mainly unchanged over the past week at $580-590/mt FOB. According to sources, an eastern India-based large mill reported a sale at $640/mt CFR Antwerp, which translates to around $585/mt FOB. Similarly, a deal for 12,000 mt was confirmed by another mill at $635-640/mt CFR Rotterdam, the sources added.
“Ex-India HRC has been almost pushed out of the Middle East completely in the face of fierce ex-China competition. There is no way Indian exporters can match a sub-$500/mt price on CFR basis. Deals are working out in Europe, but volumes are on the lower side, and the sustainability of such sales remains in doubt,” an affiliate of Tata Steel Limited told SteelOrbis.
