Indian mills have continued with different pricing strategies for hot rolled coil (HRC) exports, maintaining offer prices stable in the Middle East where trade has remained inactive, but increasing them slightly for markets in Europe where stray deals have underpinned hopes of a revival.
Sources said that indicative ex-India HRC offers have been kept unchanged at $500-520/mt FOB for Middle Eastern buyers, but no deals have been confirmed due to ex-China price competition. Notably, while ex-India HRC prices in the region have been assessed at around $530-550/mt CFR, offers from Chinese suppliers have been voiced at $490-495/mt CFR.
However, ex-India offers have been hiked by around $10-15/mt to $580-590/mt FOB for Europe, with sellers optimistic that stray deals for small volumes seen in recent weeks hold potential for improving, with distributors getting a firmer assessment of the impact of the changes in tariffs and trade flows in the coming months once booking for June deliveries start to emerge. More specifically, the sources said that a large mill reported a trade for 12,000 mt for delivery to Rotterdam at $650-655/mt CFR, compared to a similar deal reported at $640-645/mt CFR a week ago. Besides, another western India-based flat steel producer is heard to have sold a tonnage of 8,000 mt to a Europe-based affiliate trading firm in a related party transaction at around $650/mt CFR Antwerp, the sources said.
“Indian mills have not been active in the Middle East, facing aggressive competition from China. Deals in Europe have been very few, but with slightly better prices. Thus, sellers are holding some optimism of this acting as a base for improved trade activity once the market factors in the impact of tariff challenges,” an affiliate of Tata Steel Limited told SteelOrbis.
“On balance, sellers will find it more prudent to push local sales where opportunities to hike prices is good, with imports tapering off and moderate demand. The local market will remain a seller’s market in the short term, unlike exports which remain a strong buyer’s market in view of rising trade flows,” he added.