Ex-India hot rolled coil (HRC) prices have continued to soften in reaction to slow domestic sales, inventory rises and buyers in the United Arab Emirates (UAE) and the EU unwilling to conclude even deals for small tonnages without deep discounts, SteelOrbis learned from trade and industry circles, on Tuesday, May 3.
Ex-India HRC reference prices came down to $900-950/mt FOB, but very limited deals were reported. The current range is $10-30/mt below that settled last week at $910-980/mt FOB.
According to the sources, trade activity in the Gulf region remained negligible ahead of Eid while enquiries from EU too were low in view of cheaper alternatives available for buyers in the region.
Offers to the Gulf have been already at $900/mt FOB, which translates to $950/mt CFR or slightly above. This is against the latest deal for 5,000 mt booked by an eastern Indian mill for June delivery to the UAE at $910/mt FOB, trade sources said.
“Offers by mills at higher levels of $950/mt FOB are largely notional [they are mainly to Europe]. Buyers in the EU are seeking lower prices, while mills having challenges of inventory management in June-July,” a source in a private mill said.
“Even current ex-India prices are largely unworkable as alternative cheaper offers are heard at $800-850/mt FOB. All eyes are on market conditions in the Gulf once full business activity resumes after Eid. There is a lot of pessimism over the EU after price slump in Italy and Spain and current prices are not workable for Indian mills,” the sources said.