Although Indian hot rolled coil (HRC) exporters have been attempting to keep their offers stable, prices have slipped over the past week in several key destinations, including the Middle East. At the same time, talk of lower ex-India HRC offers has persisted in Vietnam, where market rumours suggest that more transactions may have been concluded at reduced price levels. European buyers, however, have continued to refrain from new bookings amid CBAM-related uncertainties that few are willing to take on.
Specifically, ex-India HRC offers in the Middle East have been voiced at levels in the range of $480/mt FOB, down by $5-10/mt week on week. Besides, according to sources, a deal for around 15,000 mt is reported to have been signed at $498/mt CFR UAE at the end of last week, while the initial offer was at $505/mt CFR.
Furthermore, indicative offers for ex-India HRC in Vietnam have been voiced at $480-485/mt CFR, down by $5/mt week on week. Besides, following a deal for around 30,000mt of ex-India HRC signed at $480-482/mt CFR Vietnam for January shipment last week, this week another deal for around 20,000 mt has been signed at $482/mt CFR, while talk about one more deal for around 40,000 mt signed at $475/mt CFR has been circulating in the market, which translates to around $455-457/mt FOB. “We also heard rumours that one of the Indian mills has booked a vessel to the Vietnamese market at as low as $440/mt FOB, which is indeed very aggressive pricing,” a market insider told SteelOrbis.
Meanwhile, in Europe ex-India HRC indicative offers have been estimated at $520/mt FOB and above, the same as last week, which translates to around $575/mt CFR, but buyers have remained cautious owing to weak demand and have preferred to avoid risks of trade barriers including the impending carbon tax.
As a result, the SteelOrbis reference price for ex-India SAE1006 HRC has moved to $455-520/mt FOB, down by $10/mt on the lower end of the range due to the lower prices for Indian coils reported in Vietnam.
