Ex-India hot rolled coil (HRC) prices have remained stable but large mills have continued to suspend submitting offers, focussing on domestic sales, and are refraining from the aggressive pricing necessary to sell overseas, SteelOrbis learned from trade and industry circles on Monday, June 3.
Sources said that ex-India HRC prices have been notionally stable at $560-600/mt FOB, with the higher end of the range corresponding to ex-India offers at $590-600/mt FOB in Europe, with the lower end corresponding to indicative offers in the Middle East and Asia. Meanwhile, according to sources, bids from the Middle East have been reported at around $540/mt FOB, though sellers have not been responding, unlike the earlier week.
They said that, with most large mills considering increasing domestic prices further, overseas sales at discounts have been abandoned and the expected rise in local demand after the formation of the new government later in the week would take care of excess production.
“There is a lot of predatory pricing in key markets overseas. Some large steel consuming countries are becoming more aggressive in halting imports into their economies. By and large, Indian steel mills prefer avoiding such conditions in exports,” a source at Tata Steel Limited told SteelOrbis.
“In the coming months, reduced consumption in China will lead to higher sales overseas, further aggravating competition and the erosion of margins from export sales. For Indian mills, local demand and prices will continue to be key drivers in the medium term,” another market insider said.
