Ex-India hot rolled coil (HRC) offer prices have declined for the second consecutive week but have still failed to attract buying interest amid intense competition from Chinese suppliers and nervous sentiment in Middle Eastern markets due to ongoing geopolitical tensions and conflicts.
Sources said that ex-India HRC offers have been reported at $500-510/mt FOB, compared to $510-520/mt FOB a week ago, but have still failed to elicit any response from buyers at a time when competitive offers from China have all been far below the $500/mt FOB mark and heard at levels of $440-450/mt FOB.
The sources said that Indian mills have been adjusting offers but were still outpriced in the market, with UAE buyers mostly seeking deals below the $500/mt CFR mark, with some ex-China deals reported at $475/mt CFR. At the same time, market sentiment in the Middle East became nervous toward the end of the week, with both buyers and sellers uncertain about how the geopolitical situation will unfold in the coming days and its potential impact on sea trade routes in the region.
In the meantime, according to sources, several Indian suppliers have been refraining from submitting offers to Europe, as local prices there continue to decline and interest in imports among distributors remains low." However, the sources said that a few large Indian mills have still been negotiating for small tonnages with EU trading firms at around $545-550/mt FOB, compared to $555/mt FOB last week.
Thus, ex-India SEQ1006 HRC reference prices have moved to $500-550/mt FOB, down by $5-10/mt over the past week.
“There are too many volumes of ex-China and ex-Indonesia on offer in most markets. The prices are also very challenging for Indian mills. Hence, most local Indian mills are out of exports. Conflict in the Middle East has also contributed to nervous business sentiments,” an affiliate of Tata Steel Limited told SteelOrbis.