Ex-India hot rolled coil (HRC) prices have remined relatively stable over the past week despite mounting pessimism across Southeast Asia and the lack of interest from the Gulf, coupled almost zero trade activity in Europe amid traditional summer stoppages. Meanwhile, most Indian mills have continued to hold back from new export offers amid improved sales realizations in the domestic market and low export allocations.
More specifically, ex-India HRC prices have largely been kept unchanged in the range of $585-620/mt FOB. Sources said that there were some enquiries originating from the UAE and Oman, but they were not converted into any confirmed deals as mills were “happy focusing” on higher realizations from local sales. A deal for a small tonnage of 5,000 mt was heard in the market for delivery to the UAE at $585/mt FOB but was not confirmed by the seller who refrained from commenting on the specifics.
Similarly, an enquiry for 12,000 mt was heard to have been received from an EU-based distributor for delivery to Rotterdam at an indicative price of $685/mt CFR, but no confirmation was available regarding whether an agreement had been concluded between the seller and buyer.
“Economic developments in China and the weak steel market are creating quite a gloomy mood across most export destinations. But it is quite the opposite in India where domestic demand and prices are looking promising. We are all expecting a strong second half of the current fiscal year,” a source at Jindal Steel and Power Limited told SteelOrbis.
“There is not a lot of volume available for exports either. We will export only if we get a good price. If not, it is still not a problem. The local market fundamentals are strong and will get better in the coming months. No one will cut prices aggressively to push sales overseas,” another Indian source said.
