This week, export prices from Indian HRC suppliers have been showing unclear movements since, on the one hand, higher offers have been heard from Indian suppliers in Europe amid better sentiments locally, though, on the other hand, offers prices from a number of Indian mills and traders in the Middle East have moved down slightly due to slow demand and growing pressure from Chinese HRC suppliers.
Specifically, ex-India HRC prices have been voiced at $530-565/mt FOB, against $540-550/mt FOB last week. Most offers for ex-India HRC in the Middle East have been heard at $580/mt CFR, though this week lower prices at $570/mt CFR have started to appear in the market, which corresponds to $530/mt FOB. “There has been pressure from Chinese suppliers who reduced their prices for costumers in the Gulf region to around $550/mt CFR from $570/mt CFR and above last week,” a market source said.
Meanwhile, offers for ex-India HRC in Europe have been voiced at around $630/mt CFR, which translates to $565/mt FOB and slightly above, up by $10-15/mt week on week, though no deals have been reported so far due to safeguard and antidumping duty risks in the region, with the last deal reported around two weeks ago at $605-610/mt CFR.
According to sources, in the short term there is a mix of optimism and caution due to the fluctuating prices in China and the fading excitement over stimulus measures. Besides, EU steel mills are trying to raise their prices, but it remains uncertain whether buyers will accept these new levels. Moreover, a series of antidumping investigations from the EU and Vietnam could put ongoing pressure on Indian exports.
