Ex-India hot rolled coil (HRC) export offers have softened during the past week, with EU buyers, the focus of most exporters, mainly holding back deals, anticipating lower finished steel prices. Stray trades were concluded at a lower price compared to last week, SteelOrbis has learned.
Prices for ex-India HRC have declined by $10/mt on average week on week to $740-780/mt FOB.
Activity in traditional markets like Southeast Asia has remained quiet with buyers in Vietnam anticipating prices are still to bottom out and largely have not responded to ex-India offers, the sources said.
There has been information in the market about a small-volume deal for Indian re-rolling grade HRC to Europe at $780/mt FOB or $815/mt CFR, according to sources, while the previous bookings were reported at $790-800/mt FOB. Sources have said that another contract at a price level $10/mt lower has also been rumoured to Europe, but this could not be confirmed by the time of publication.
“Despite buyers’ low interest, we do not see significant downside risks to export prices. Deals concluded at slightly lower levels are mostly for small tonnages to maintain a market presence in the EU market which has recently been the focus of exporters,” an official from a steel mill said.
“Producers are making fresh assessments for export allocations for the first quarter of the new fiscal year [April-June]. With domestic demand sustaining, export allocation will remain on the lower side. This will support prices and producers will commit trades only at favourable prices as inventory control is not a priority with stocks moving fast in local sales,” he added.
