Ex-India hot rolled coil (HRC) prices have remained relatively unchanged over the past week, showing only a slight downward bias, though overseas sales have been extremely slow in the face of competitive challenges led by supplies from China, and with buyers from Europe and the Middle East not responding to offers in reaction to weak demand. Besides, according to sources, since the export market remains sluggish, Indian mills are trying to push more tonnages in their local market, where flat product demand is also weak.
More specifically, offers for ex-India HRC have settled at $520-540/mt FOB, down by $5/mt on the higher end of the range week on week. According to sources, Indian mills do not have many export orders, with only a few reported at $520-525/mt FOB and lower in the Middle East. “Offers from India have been ranging at $550-565/mt CFR UAE levels, depending on the supplier, though tradable prices have been estimated at much below this level given the competition with other suppliers and especially those from China,” a market insider told SteelOrbis, adding, “Even offers from Japan and Taiwan have been heard at $540/mt CFR UAE.”
According to a representative of Indian mill Jindal Steel and Power Limited (JSPL), in the current market conditions, the workable price for the Middle East is estimated at $480-490/mt FOB, but Indian mills including JSPL will not push sales at such prices in the interest of their own economic viability.
Meanwhile, ex-India HRC offers in Europe have been voiced at $590/mt CFR, mainly the same as last week, though demand has remained sluggish due to safeguard and antidumping risks.
“In the coming month, the HRC market is likely to go down further. both local Indian prices and prices for overseas buyers are expected to decline. But we may see some price improvement after the second week of December as usually customers buy material for a week between December 10-20 for January shipment/arrival,” an Indian trader told SteelOrbis.