Ex-India hot rolled coil (HRC) prices have remained stable during the past week, but trading activity has fallen almost silent amid a combination of weak demand and aggressive ex-China competition in the Middle East and with distributors in Europe heard to be fully stocked and not looking at import deals immediately, SteelOrbis has learned from trade and industry circles.
Sources said that, even though most local mills have generally refrained from submitting export offers, ex-India prices have been notionally reported at $520-530/mt FOB for the Middle East and higher at $580-590/mt FOB for Europe, but neither elicited any interest from buyers across the regions.
Both sellers and buyers have retreated as bids in most key destinations have fallen to sub-$500/mt FOB levels and, with some even as low as $450/mt FOB, Indian mills have preferred to push volumes for local sales which offer stronger margins.
“During much of the past week, the market was in the grip of nervousness as the armed forces of India and Pakistan were in conflict. Overseas sale efforts were paused. However, even with the announcement of the ceasefire and business sentiments bouncing back, Indian sellers are unwilling to be aggressive on the export fronts in terms of pricing when local sales and prices are looking good,” a representative of one Indian steel mill said.
“As things stand in the short and medium term, ex-China will dominate the Asian markets, while Indian mills will have the safety of the domestic market,” he said.