Ex-India hot rolled coil (HRC) prices have largely remained stable, with sellers optimistic over a revival in demand and in prices in key markets, with even some higher offers heard in Europe.
More specifically, ex-India HRC prices have been quoted in the range of $580-600/mt FOB, unchanged over the past week. At the same time, trade activity has been minimal over the past week, as, while “mills want higher prices, buyers have been resisting even though most averred that the market may have touched a bottom,” sources said.
Rumors regarding several deals signed at $570-577/mt FOB to the Middle East have been circulating in the market, though this information has not been confirmed by the time of publication, and, according to sources, most Indian suppliers have been refraining from new offers to the Middle East, preparing for hikes, seeing some improvement in the mood globally.
“The export market is showing more positives than negatives. On the positive side, there is a general consensus emerging that prices may have bottomed out as sellers led by mills in China have stopped dropping prices. But deals at higher prices are still a challenge as buyers’ resistance still prevails,” a sources at Jindal Steel and Power Limited (JSPL) said.
“The uncertainty is whether the positive or negative will set the short-term trend and this is difficult to forecast. Europe is also uncertain as buyers from the region have significantly reduced interest in imports. Some mills in eastern Europe are dropping flat product prices while mills in the north are attempting price increases. It is difficult to assess the market direction in the EU,” he said. According to sources, ex-India HRC offers have been voiced in southern Europe at around $650-660/mt CFR, which corresponds to around $600/mt FOB, though higher offers at around $665/mt CFR have been appearing in the market.
At the same time, at least two officials at private mills said that they were close to reducing export allocations by 15-20 percent for the July-September quarter as any rebound in market conditions would only have an impact on the export trade in the third quarter of the current fiscal year.
