Export prices for Indian hot rolled coil (HRC) have remained largely stable over the past week. However, market sentiment has been softening as talk of lower offers emerging in Europe, alongside intensified competition in the Middle East, with deals not only from China but also from Japan and Taiwan reported to be concluded in the UAE at at least $20-25/mt below Indian offers, adding pressure on Indian suppliers.
Sources said that ex-India HRC offers to the Middle East have been maintained at lower levels of $485-500/mt FOB, and, though the slightly higher number of enquiries indicated a revival of buyers’ interest, speculative chatter regarding a few deals at the lower end of the range have not been confirmed by either buyers or sellers, amid continuing uncertainties. For example, at least two market participants told SteelOrbis that an eastern India-based mill is heard to have concluded two separate trades for 5,000 mt and 15,000 mt for delivery to Oman at $480/mt FOB. However, this information has not been confirmed by the time of publication. At the same time, offers for ex-India SAE1006 HRC to the UAE have been voiced at $515-525/mt CFR, depending on the supplier, mainly the same as last week.
“Indian offers are not competitive in the Gulf region since, apart from cheaper ex-China prices, sizable volumes were sold for re-rolling HRC from Japan and Taiwan at $490-495/mt CFR UAE last week. So, ex-India prices should be at $500/mt CFR to attract someone,” a local trader told SteelOrbis.
Meanwhile, ex-India offers in southern Europe have been voiced at around $520/mt FOB, down by $5/mt week on week, which translates to around $570/mt CFR. However, talk about lower offers at around $550-555/mt CFR, or around $500-505/mt FOB, has started to circulate in the market, though no deals have been reported at this level so far.
At the same time, indicative offers for ex-India HRC in Vietnam have been estimated at $500-505/mt CFR levels, mainly the same as last week.
As a result, the SteelOrbis reference price for ex-India SAE1006 HRC has settled at $485-520/mt FOB, down by $5/mt on the higher end of the range week on week.