Ex-Indian hot rolled coil (HRC) prices have consolidated at higher levels as mills have not been willing to give discounts to a number of outlets, where prices are lower than in Europe, the main sales destination for exporters recently. This happened even though Indian sellers have faced resistance in some geographies like the Middle East, SteelOrbis has learned from trade and industry circles.
The SteelOrbis reference price for ex-India SA1006 2 mm HRC has increased to $740-770/mt FOB, up from $715-760/mt FOB last week. Sources said that the higher end of the price range was for shipment commitments in April and slightly lower at $740-750/mt FOB was also available as May shipment bookings commence. But most sellers are heard to have completed pulling out offers submitted earlier at below these levels, saying that they are targeting the same price they get in Europe in other markets.
According to trade circles, the number of deals and inquiries from the Middle East has dipped over the past week as buyers from the region have been seeking cheaper alternative sourcing like China, and with indications of buyers’ resistance emerging to the sustained high level of prices.
However, even as booking for May shipment commenced, demand and prices have remained robust in the EU markets and sellers are optimistic of at least maintaining higher price levels even if they have paused further aggressive increases.
Sources said that an eastern India-based mill reported a deal for 30,000 mt for delivery to Antwerp at $760-770/mt FOB and another deal of 20,000 mt for May to Italy at $750/mt FOB.
A Maharashtra-based integrated mill has reported a trade for 20,000 mt at around $770/mt FOB to Rotterdam and another tonnage of 10,000 mt for Egypt at $755/mt FOB, sources said.
“A slight dip in trade volumes was noticed over the past week,” a source at an Indian mill said.
“But we do not assess any strong buyer resistance. Supplies are getting tighter in key markets and mills in the EU and the US, having completed one round of price increases, is expected to continue aggressive pricing. India sellers are just taking time off to achieve the next price target of $780-800/mt FOB. The target may be achieved by end of April,” the source said.