Ex-India HRC prices have moved down this week, following sharp declines in the European market, where sales remain limited due to CBAM-related challenges. Meanwhile, offers to the Middle East and Vietnam have stayed largely stable or been corrected down only slightly, while competition from Chinese suppliers continues to intensify, pressuring Indian mills in key export markets.
More specifically, ex-India HRC offers in the Gulf have been reported in the range of $485-500/mt FOB compared to $490-500/mt FOB, with most offers reported at $510-525/mt CFR UAE, down by $5/mt on the lower end of the range week on week. According to the sources, the Middle East HRC market is seeing mounting pressure, as ex-China HRC offers have slipped again this week to $490-495/mt CFR UAE, squeezing Indian mills out of the competition.
In the meantime, offers for ex-India HRC in Europe have shown a significant drop to around $525/mt FOB, compared to $550-555/mt FOB at the beginning of the week. Most Indian offers have been heard at around $575/mt CFR southern Europe, against $590/mt CFR at the end of last week, with the decline largely attributed to CBAM regulations. According to sources, “You should add to this CFR base price at least €60/mt or more for CBAM,” and this has prompted most buyers to remain extremely cautious. “Distributors have been avoiding imports owing to risks of trade barriers like carbon tax and proposed changes to the quota restriction regime,” a market insider told SteelOrbis.
Meanwhile, indicative offers for ex-India HRC in Vietnam have been estimated at $500/mt CFR level, compared to deal prices at $495-497/mt CFR last week signed through Chinese traders and versus offers at $505-510/mt CFR last week.
“The fresh slide in ex-China prices has thrown new challenges for exporters. There are too many challenging competitive offers against Indian exporters. In Europe, local prices are rising but not to an extent that will drive buyers towards imports,” an official with a Tata Steel Limited affiliate told SteelOrbis.
Thus, the SteelOrbis reference price for ex-India SAE1006 HRC has moved to $485-525/mt FOB, down by $30/mt on the higher end of the range week on week.
