Ex-India HRC export prices have remained largely stable across key destinations over the past week, though trading activity has been muted amid cautious buyer sentiments. While offer levels in the Middle East and Southeast Asia have shown little change from last week, limited deal-making has highlighted the ongoing resistance from buyers seeking lower price levels. The market focus has also increasingly shifted toward higher-grade and value-added products, as mills and distributors explore opportunities to offset pressure in the commodity-grade HRC segment.
Sources said that ex-India HRC offers are stable in the range of $470-475/mt FOB in the Middle East but trade activity against these offers has remained mainly silent. In particular, most offers for ex-India HRC are at $495-500/mt CFR UAE, compared to deal prices at $490-495/mt CFR last week. According to sources, while no fresh deals have been reported in the UAE this week so far, a deal for ex-India HRC has been signed at around $500/mt CFR Oman.
At the same time, market attention has been drawn to at least three confirmed deals for high-grade HRPO (hot rolled pickled and oiled) coil sales to the Middle East, concluded by major distributors of integrated steel mills. The three cargoes of approximately 5,000 mt, 8,000 mt, and 15,000 mt have been reported for delivery to Abu Dhabi and Jebel Ali, according to two large distributors. Although the final prices have not been disclosed by the sellers, the latter confirmed that the transactions have been concluded at premiums of around $90-110/mt over standard commodity-grade HRC, or around $590-600/mt CFR.
“We are bullish on exports of higher grades of HRC value-added products like HRPO as demand for this automotive component grade is looking very good. We expect to push this export business segment aggressively,” an official at one distributing-exporting firm said.
An official at a steel mill not involved in these deals said, “HRPO is still a very niche export in India and volumes are still low. But this a growing market and a few local steel mills are gradually increasing captive conversion capacities for value-added HRC as margins are very good and demand rising as major automotive component markets are diversifying their sourcing beyond China and Japan.”
Furthermore, this week offers for ex-India HRC in Vietnam have been voiced at $490/mt CFR, the same as last week, which translates to around $470/mt FOB. However, according to sources, Vietnamese customers still believe lower prices or around $480-485/mt CFR are possible to achieve in new deals through traders.
At the same time, according to officials at two mills, ex-India HRC offers in Europe have remained rare. Indicative offers for ex-India HRC in Europe have been voiced at $570-575/mt CFR, the same as last week, which translates to around $520/mt FOB. However, according to sources, talk about a deal for around 30,000 mt of ex-India HRC signed last week at $560/mt CFR or €480/mt CFR for March shipment and the second quarter period has been circulating in the market.
As a result, the SteelOrbis reference price for ex-India SAE1006 HRC has settled at $470-520/mt FOB, versus $467-520/mt FOB at the end of last week, with the lower end of the range corresponding to offers in Vietnam and the Middle East, while the higher end corresponds to indicative offers in Europe.
