Ex-India hot rolled coil (HRC) prices have been kept mainly unchanged amid continued silent trade conditions attributed to the holidays in Europe and price volatility combined with weak demand keeping buyers on the sidelines.
More specifically, although ex-India HRC prices have remained relatively stable at $500-520/mt FOB, the majority of offers at the lower end of the range are no longer available in the Middle East, where most Indian offers have been voiced at around $550/mt CFR, which translates to around $520/mt FOB. Besides, according to sources, most buyers have largely declined to confirm trades owing to weak demand and cheaper alternatives like ex-China and ex-Japan offers. At the same time, the lower end of the range has been only reported in occasional offers to non-traditional destinations such as Nepal.
Meanwhile, offers for ex-India HRC in Europe have remained higher at around $570-580/mt FOB in Europe. According to sources, one trade for 5,000 mt was confirmed last week, just ahead of the Easter holidays at $635/mt CFR Antwerp, though most offers have been estimated at $640-645/mt CFR southern Europe. According to market insiders, such buying was an exception and is unlikely to be sustained once business activity resumes in Europe over the course of this week as buyers have been globally reluctant to conclude import trades unless there is greater clarity on changes in trade flows.
“The Middle East market, we hear, is either fully stocked or buyers are awaiting additional discounts at around $505/mt CFR. A few Indian mills are in active sales negotiations in Europe, but deals are not working out, either due to weak demand or trade measures,” an affiliate of Tata Steel Limited told SteelOrbis.
