Ex-India hot rolled coil (CRC) prices have mainly remained stable over the past week but the mood among sellers has improved with modest buying interest reviving in the EU region and improved activity in the Middle East, but the scope for increasing prices has remained very restricted in price-sensitive destinations.
More specifically, ex-India HRC prices have largely been kept at $575-605/mt FOB, versus $580-600/mt FOB last week, with the lower end of the range corresponding to the deal price in the Middle East and with the higher end in Europe. There was renewed optimism as, even though small in terms of tonnages, a few deals were successfully signed by a number of buyers. In particular, according to sources, a deal for around 10,000 mt is reported to have been signed at $665/mt CFR Antwerp, which translates to around $605/mt FOB. Meanwhile, most ex-India HRC offers have been voiced at $670/mt CFR and slightly above in Europe this week.
Besides, market insiders have reported a deal from a western India-based mill for delivery to the UAE at $610/mt CFR, or around $575/mt FOB and slightly below. Besides, talk about another deal for ex-India HRC signed at $595/mt CFR with Turkish buyers has been circulating in the market. This information has not been confirmed by the time of publication, but trade circles have confirmed these price levels as tradable in the market.
“There are some positives emerging in overseas markets and prices may have bottomed out. But Europe remains very price-sensitive, and it is not the right time for sellers to attempt price increases. But import interest is better and the Gulf region should follow suit as business activity picks up after the holidays of last week,” sources at a private mill told SteelOrbis.
“There will be recovery in August-September, but it will be slow. Export volumes of local mills will improve, prices not so much,” a market insider said.