Ex-India hot rolled coil (HRC) prices have been maintained unchanged, with sellers taking a more optimistic stance following the hardening of global prices led by China, but actual trade activity has continued to remain absent owing to geopolitical uncertainties in the Middle East and with buyers in Europe waiting for the final outcome of antidumping investigations.
Sources said that ex-India HRC prices have been stable at $540-550/mt FOB, with sellers maintaining that, if the current improved mood in key destination is sustained through the current month, export bookings will revive. However, according to market insiders, talk about a deal signed around 10 days ago with a significant discount at $520/mt CFR UAE or around $510/mt FOB, for 10,000-13,000 mt of HRC has been circulating in the market, though this information has not been confirmed by the time of publication. “There are rumors about ex-India HRC offers at around $540/mt CFR, but we don’t believe in this, as the lowest levels have been voiced at $530-540/mt FOB,” an Indian trader said.
At the same time, the sharp revival in prices in China is a positive for global trade with the number of active inquiries received by Indian mills rising. However, trades are being deferred for multiple “non-economic reasons”. For example, in the Middle East, because of geopolitical reasons buyers are cautious and sellers are finding it difficult to commit deliveries involving shipping routes through the Red Sea.
As for Europe, sources at mills pointed out that with mills increasing prices, distributors are increasingly looking at imports. But deals are being held back by both sellers and buyers until November when some clarity will emerge regarding whether a provisional antidumping levy will be imposed or not.