Ex-India hot rolled coil (HRC) trade activity has eased slightly with a number of sellers reported to be withdrawing offers at the first hint of prices stabilizing or easing in key markets, SteelOrbis has learned from trade and industry circles.
The reference price for ex-India HRC is standing at $680-740/mt FOB depending on the sales destination, so the average tradable level has added $5/mt over the past week to $710/mt FOB. A number of offers below the $700/mt FOB were withdrawn over the past week as suppliers have not been ready to accept lower levels actively, even though sentiments have eased. Buyers were expecting the uptrend in Europe and the Middle East to have run its course in the short term.
However, Indian sellers have preferred to pull out of following the lower pricing and, though the number of deals reported over the past week fell as a result, local mills have remained optimistic based on the fact that producers in some importing countries have been increasing ex-work prices and expectations that the current easing of the prices will be short-lived.
The deal for ex-India HRC to Europe has been reported at $790-800/mt CFR as SteelOrbis reported earlier, translating to around $730/mt FOB. Moreover, one mill has managed to sell to Europe at the average price of $805/mt CFR, which signals that Indian exporters are not going to refrain from a gradual uptrend even though local prices in Europe have been showing smaller changes lately. Moreover, some rare offers at the higher levels of $805-820/mt CFR have been heard in the European market.
A Gujarat-based steel mill pulled back an offer initially submitted at $680/mt FOB to an Asian buyer.
“The acceptable price for Gulf buyers now seems to be at $720-730/mt CFR maximum [around $690-700/mt FOB]. Indian sellers are not willing to match such prices and prefer to ride out the current slight downturn. Local mills are staying away from playing the aggressive pricing game,” a source at ArcelorMittal Nippon Steel Limited (AMNS) said. As reported earlier, a lower-priced deal to the UAE was done at $715-720/mt CFR by one Indian seller a week ago, but some producers are still insisting on higher offers, at $740/mt CFR and not below.
“Major steel mills in Europe and the US are increasing domestic prices steadily. Hence, we think downside risks to prices are temporary. Indian sellers assess retaining a competitive edge even above the $700/mt FOB mark and no need to panic, and are aggressively pricing sales overseas,” the source said.
