Ex-India hot rolled coil (HRC) prices have been kept stable with sellers under no pressure to adjust them, amid strong demand and realizations in the local market. At the same time, the competition with Chinese suppliers has remained tough, in the Middle Eastern and Asian markets in particular, while no significant recovery in demand in Europe has been seen so far despite the anticipated window for increases after the summer holidays in the region.
Ex-India HRC prices have been maintained in the range of $590-620/mt FOB, with sellers continuing to hold back offers to almost all main trade destinations, resisting the overall pressure on the price line from cheaper ex-China offers. According to sources, several Indian suppliers were able to conclude low-volume deals for around 3,000 mt for delivery to Antwerp at $690/mt CFR, though this information has not been confirmed by the time of publication. Meanwhile, most ex-India HRC offers have been voiced at around $675/mt CFR southern Europe.
Meanwhile, talk about a deal for 5,000 mt of ex-India HRC at $595/mt FOB or around $625-630/mt CFR UAE has been circulating in the market, but this deal has been denied by UAE customers and is considered to be “overpriced”. “A lot of people are talking about this deal, but it seems this information is not true given the price and the fact that most Indian mills are simply not offering right now in the Middle East,” the representative of one Indian mill told SteelOrbis.
“Indian market sentiments are slightly positive, as now we are getting into the festival months, (Ganpati, Dussehra, Diwali) and usually during this time - just after the monsoon season - the market remains better in terms of demand. To maintain a supply-demand balance, a few east coast mills are exporting HRC, but it is hard now as buyers are really keeping a close eye on Chinese offers standing at around $540/mt FOB, depending on the supplier,” an Indian trader told SteelOrbis.