Ex-India hot rolled coil (HRC) prices have declined for the second consecutive week to below the $500/mt FOB mark in face of ex-China competition but still with limited success in pushing small-volume deals in the Middle East, Bangladesh and Nepal.
More specifically, ex-India HRC prices have declined by $10-25/mt to the range of $490-500/mt FOB, with some market participants claiming to liquidate export-allocated stocks from the previous quarter.
However, most mills achieved very limited success in such stock liquidation in the face of increased ex-China competition. Thus, only occasional deals have been reported during the past week. According to sources, an eastern India-based mill has reported a trade for 6,000 mt for delivery to Qatar at $490/mt FOB, while another integrated mill is heard to have concluded a trade for delivery of 8,000 mt to the UAE at $486/mt FOB, with these prices translating to around $520/mt CFR and $515/mt CFR, respectively.
“Indian mills are trying for HRC export orders to the Middle East, Bangladesh and Nepal and also to African countries at around $490-500/mt FOB levels,” a market insider told SteelOrbis, adding, “While Japanese mills sold HRC to the UAE at $500-510/mt CFR for March shipment, Indian mills are offering their coils at $520-525/mt CFR for late January-early February shipments.”
“The revival of trading even for lower volumes and the number of deals are a positive. but it cannot be claimed to be an indicative outlook. The dynamics of global trade can change dramatically over the next few months, particularly from changes in tariffs across economies and the start will be with the new US administration taking charge later this month,” a source at Tata Steel Limited said.