Ex-India hot rolled coil (HRC) prices have remained largely stable over the past week, with some offers indicating a mild upward trend. However, limited demand in key export destinations continues to weigh on sales. At the same time, intensified competition in the Gulf region has pushed bid levels lower, while the ongoing bid-offer mismatch has effectively stalled new transactions.
More specifically, ex-India HRC offers in the Middle East have been reported at $505-515/mt FOB, the same as last week. According to sources, most ex-India HRC offers have been estimated at $535-540/mt CFR UAE, the same as last week, though some traders reported higher prices at $550-565/mt CFR UAE, which are considered “totally uncompetitive” given that offers from Chinese suppliers have been voiced at $510/mt CFR. “Indian mills may adjust prices to $540-550/mt CFR, but only if 50 percent of the quantity consists of 2,000 mm,” an Indian trader told SteelOrbis.
“Demand in the Middle East is seen to be improving, but the market remains highly price-sensitive. With many aggressive offers heard below the $500/mt CFR mark, Indian sellers have largely been kept on the sidelines,” an official at Jindal Steel told SteelOrbis.
Meanwhile ex-India HRC offers in Europe have been voiced at $600-610/mt CFR, up by $5/mt on the higher end of the range week on week, which translates to around $550-555/mt FOB, up by $5/mt week on week. According to sources, in Europe, concerns over possible quota exhaustion have kept some buyers away from imports. Still, Indian suppliers have room to sign new deals, as SteelOrbis’ EU quota tracking system showed that by September 5 they had used only 33 percent of the 227,781 mt quota for the July-September period.