Ex-India hot rolled coil (HRC) prices have been kept stable with large mills continuing to submit offers to Europe with limited success in converting small volumes into deals, while staying away from other destinations like the Middle East and Asia in the face of stiffer ex-China competition.
Sources said that ex-India HRC prices have settled at $560-600/mt FOB, against $560-610/mt FOB last week, with the higher end of the range corresponding to offers to Europe at around $650-655/mt CFR, down by $5-10/mt week on week. At the same time, according to sources, following a trade for 3,000 mt by an eastern India-based integrated mill at $660/mt CFR Antwerp, another deal for 5,000 mt has been signed at $650/mt CFR.
There has been market chatter of two more deals aggregating to 12,000 mt at a price of $640/mt CFR, but several market intermediaries have said that these were “rumours” in absence of any confirmation from the sellers’ side.
Meanwhile, Indian mills have halted submission of any offers to the Middle East in the face of ex-China offers in the region heard at as low range of $550-560/mt CFR.
“Compared to other markets, Europe is still attractive for Indian mills. But it is difficult to assess how many offers are converted to confirmed deals because sellers are reluctant to disclose prices net of discounts, as there is strong competition. In contrast, Middle East discounting trends are unviable for Indian mills,” a source at Tata Steel Limited told SteelOrbis.