This week, most Indian HRC suppliers have been trying aggressively for export orders especially in the Middle East, Nepal, Bangladesh and even in Southeast Asia, with prices showing a slight downward bias in new deals as compared to last week. Meanwhile, local demand has failed to pick up so far, putting additional pressure on Indian HRC mills.
Specifically, ex-India HRC prices have been voiced at $520-545/mt FOB, against $525-565/mt FOB last week. Most offers for ex-India HRC in the Middle East have been voiced at around $560/mt CFR, which corresponds to around $520-525/mt FOB, down by $5-10/mt week on week. At the same time, according to sources, this week demand for HRC has increased significantly in the Middle East region, with deals for around 20,000-25,000 mt each reported to have been signed at $550/mt CFR UAE and $560/mt CFR. “The current tradable price in the Middle East is at $550/mt CFR, but if the buyers need thinner material of 2 mm and below then they pay extras,” an Indian trader told SteelOrbis, adding, “There are two main re-rollers in Abu Dhabi who need around 30,000-50,000 mt per month of HRC and there are a few pipe makers who also need around 50,000-75,000 mt, apart from the traders and stockists in the Jebel Ali area who regularly buy from Indian HRC mills.”
Meanwhile, more deals for smaller quantities have been reported for ex-India HRC in Nepal at $560-570/mt delivered to border, which translates to around $525-530/mt FOB, the same as last week, and in Bangladesh at around $530-535/mt FOB.
In the meantime, ex-India HRC offers in Europe have been voiced at $595-605/mt CFR, which translates to around $540-545/mt CFR, down by $20/mt week on week. However, despite the price decline no fresh deals have been reported as European buyers are refraining from purchases due to the safeguard and antidumping issue following the news about the start of registration of imports of HRC from Egypt, India, Japan and Vietnam, that are under ongoing antidumping investigations, according to the EU's Official Journal published on October 25. The investigation was launched in August following a complaint filed by the European Steel Association on behalf of its member mills on June 24. The complaint requested estimated dumping margins of 10 percent for the EU's imports of the products in question in 2023 from India, though most market insiders believe that the final duty rate will generally align with the lower levels.
